Agenda packet, first session — Fremont City Council, June 14, 2022

City Council Chambers
3300 Capitol Avenue
Fremont, CA

Fremont City Council

Lily Mei, Mayor
Raj Salwan, Vice Mayor
Teresa Keng, District 1
Rick Jones, District 2
Jenny Kassan, District 3
Yang Shao, District 4
Teresa Cox, District 6

City Staff

Karena Shackelford, City Manager
Rafael Alvarado, Jr., City Attorney
Christina Briggs, Assistant City Manager
Brian Stott, Assistant City Manager

Geneva Bosques, Communications and
Legislative Affairs Director
Allen DeMers, Human Resources Director
Susan Gauthier, City Clerk
Curtis Jacobson, Fire Chief
Hans Larsen, Public Works Director
David Persselin, Finance Director
Dan Schoenholz, Community Dev. Director
Suzanne Shenfil, Human Services Director
Sanford Taylor, Information Technology Director
Sean Washington, Chief of Police
Suzanne Wolf, Community Services Director
Fremont City Council
Agenda and Report
June 14, 2022

General Order of Business

1. Preliminary
• Call to Order
• Salute to the Flag
• Roll Call

2. Consent Agenda

3. Ceremonial Items

4. Public Communications

5. Scheduled Items
• Public Hearings
• Appeals
• Reports from Commissions, Boards and
Committees

6. Report from City Attorney

7. Other Business

8. Council Communications

9. Adjournment

IMPORTANT NOTICE REGARDING THE

CITY COUNCIL MEETING
This meeting is being conducted utilizing
teleconferencing and electronic means Pursuant to
Government Code Section 54953(e) (Assembly Bill
361), The live stream of the meeting may be viewed
on the City of Fremont’s website at
www.Fremont.gov/Channel27 , which also provides
a link to the live stream; or, on Comcast Channel 27.

Please note at this time, Channel 27 is only
available to Comcast cable subscribers. The public
may only view the meeting on television and/or
online and not in the Council Chamber.

Submission of Public Comments: For those wishing
to make public comments at the June 21, 2022
Council meeting, you may either: (1) submit your
comments by email prior to the meeting, or (2) by
Spoken Public Comment during the meeting. If you
experience technical problems with the telephonic
meeting, please contact the City Clerk’s Office at
(510)284-4060 or [email protected] .

See instructions on next page.

Agenda and Report - Fremont City Council Meeting - June 14, 2022

June 14, 2022 Fremont City Council Page 2
How to submit Public Communications / Public Comment by email prior to the meeting:

Send an email to [email protected] by 4:00 p.m. the day of the meeting. Please identify the agenda item number and meeting date in the subject line of your email or specify that it is not related to an agenda item. Emails will be compiled into files by agenda item number, distributed to the City Council and staff, and published in the City's Agenda Center on www.fremont.gov. If you wish to share an attachment/exhibit during a public comment portion of the zoom meeting, submit the pdf formatted document(s) to the email above by the noted deadline. Use the “raise hand” feature to request to speak. When called upon by the Mayor, City staff can share the document(s) while you are speaking during the time allotted.

Electronic comments on agenda items for the City Council meeting may only be submitted by email. Comments via text and social media (Facebook, Twitter, etc.) will not be accepted.

How to provide Spoken Public Comment during the meeting:
1) By phone 833-430-0037 (toll free). Webinar ID: 841 6371 7111. Click *9 to raise a hand to speak. 2) By online https://us06web.zoom.us/j/84163717111
a. Use a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. Mute all other audio before speaking. Using multiple devices can cause an audio feedback. b. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak.
c. When the Mayor calls for the item on which you wish to speak, click on “raise hand.” Speakers will be notified shortly before they are called to speak.
d. When called, please limit your remarks to the time limit allotted.

If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act, or if you do not have access to email or the internet, please contact The City Clerk’s Office at (510)284-4060 or [email protected] prior to the meeting for assistance.

Order of Discussion
Generally, the order of discussion after introduction of an item by the Mayor will include comments and information by staff followed by City Council questions and inquiries. The applicant, or their authorized representative, or interested citizens, may they speak on the item; each speaker may only speak once to each item. At the close of public discussion, the item will be considered by the City Council and action taken. Items on the agenda may be moved from the order listed.

Consent Calendar
Items on the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which case the item will be removed from the Consent Calendar and considered separately.

Additionally, other items without a “Request to Address the City Council” card in opposition may be added to the consent calendar. The City Attorney will read the title of ordinances to be adopted.

Oral Communications
Any person desiring to speak on a matter which is not scheduled on this agenda may do so under the Oral Communications section of Public Communications. Please submit your speaker card to the City Clerk prior to the commencement of Oral communications. Only those who have submitted cards prior to the beginning of Oral Communications will be permitted to speak. Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item which does not appear on the agenda, unless the item meets stringent statutory requirements. The Mayor will limit the length of your presentation (see instructions on speaker card) and each speaker may only speak once on each agenda item.

The City Council Agendas may be accessed by computer at the following World Wide Web Address:
www.fremont.gov

Availability of Public Records
All disclosable public records relating to an open session item on this agenda that are distributed by the City to all or a majority of the City Council less than 72 hours prior to the meeting will be available for public inspection in specifically labeled binders located in the lobby of Fremont City Hall, 3300 Capitol Avenue during normal business hours, at the time the records are distributed to the City Council.

Information about the City or items scheduled on the Agenda and Report may be referred to:

Address: City Clerk
City of Fremont
3300 Capitol Avenue, Bldg. A
Fremont, California 94538
Telephone: (510) 284-4060

Your interest in the conduct of our City’s business is appreciated.

June 14, 2022 Fremont City Council Page 3
Agenda
Fremont City Council Regular Meeting
June 14, 2022
City Council Chambers, 3300 Capitol Avenue, Building A
7:00 PM

1. Preliminary
A. Call to Order
B. Salute the Flag
C. Roll Call
D. Announcements by Mayor / City Manager

2. Consent Calendar
Items on the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Calendar and considered separately. Additionally, other items without a “Request to Address Council” card in opposition may be added to the consent calendar. The City Attorney will read the title of ordinances to be adopted.

A. Motion To: Waive Further Reading of Proposed Ordinances (This permits reading the title only in lieu of reciting the entire text.) B. Approval of Minutes - None.

C. AB 361 - Consider Making Findings to Allow the City Council and the Legislative Bodies of the City of Fremont to Continue Holding Meetings via Videoconference pursuant to AB 361
Contact Persons:

Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]

RECOMMENDATION: Staff recommends that the City Council make the following findings in order to continue holding videoconference meetings for the City Council and the City’s legislative bodies:

1. The City Council has reconsidered the circumstances of the COVID-19 state of emergency;

2. The state of emergency continues to directly impact the ability of the members to meet safely in person; and

3. Staff is directed to schedule reconsideration of these findings at the regularly scheduled City Council meeting on July 12, 2022.

June 14, 2022 Fremont City Council Page 4
D. e-PLAN, INC. MASTER LICENSING AGREEMENT - Authorize the City Manager or Designee to Execute a Master Licensing Agreement with e- Plan, Inc., for the City’s Electronic Plan Review System for a Three-year Term and a Not-to-Exceed amount of $493,680 and Making Findings of CEQA Exemption
Contact Persons:

Name: Jennifer Craven Sanford Taylor
Title: Business Manager IT Director
Dept: Community Development Information Technology Services Phone: 510-494-4554 510-494-4802
E-Mail: [email protected] [email protected]

RECOMMENDATION: Authorize the City Manager or Designee to execute a Master Licensing Agreement with e-Plan, Inc., for electronic plan review SaaS services for a three-year term and a not-to-exceed compensation of $493,680.

E. SPECIAL EVENT SPONSORSHIP PROGRAM – Approve Special Event Sponsorship Awards for FY 2022/23
Contact Persons:

Name: Amy Gee Matthew Snelson
Title: Management Analyst
II/Public Affairs Coordinator
Police Captain
Dept: Police Department Police Department
Phone: 510-790-6967 510-790-6874
E-Mail: [email protected] [email protected]

RECOMMENDATION: Allocate FY 2022/23 special event sponsorship awards to the nine eligible events as specified in this report.

F. CURBSIDE PROCESSING AGREEMENT AMENDMENT - Authorize Amendment for Curbside Processing Compensation Effective Through Contract Term Expiration of May 31, 2026
Contact Persons:

Name: Kathleen Cote-Guarnieri Suzanne Wolf
Title: Environmental Services
Manager
Community Services Director
Dept: Environmental Services Community Services
Phone: 510-494-4583 510-494-4329
E-Mail: [email protected] [email protected]

RECOMMENDATION: By motion, authorize the City Manager, or her designee, to execute the Sixth Amendment to the Agreement between the City of Fremont and BLT Enterprises of Fremont, LLC for Curbside Recyclable Materials and Curbside Organic Waste Services consistent with the terms outlined in this staff report. This amendment would include a payment of 649,304.60 from the Integrated Waste Management Disposal Differential Reserve for processing costs associated with curbside material delivered by the City from January 1, 2022 through April 30, 2022.

June 14, 2022 Fremont City Council Page 5
G. ALAMEDA COUNTY BEHAVIORAL HEALTH CARE SERVICES MASTER CONTRACT - Authorization to execute a contract amendment with Alameda County Behavioral Health for Adolescent Substance Use Disorder Services provided by the Human Services Department’s Youth and Family Services Division for FY 2022/23; Appropriate Additional Funds and Making Findings of CEQA Exemption
Contact Persons:

Name: Annie Bailey Suzanne Shenfil
Title: Youth and Family Services
Administrator
Director
Dept: Human Services Department Human Services Department Phone: 510-574-2111 510-574-2051
E-Mail: [email protected] [email protected]

RECOMMENDATIONS: By motion:

1. Authorize the City Manager, or her designees, to execute a FY 2022/23 master contract with Alameda County Behavioral Health for the delivery of adolescent substance use disorder intervention and treatment services, for the period of July 1, 2022 through June 30, 2023 in an amount not to exceed $516,881.

2. Increase the revenue estimate in the approved budget and appropriate an additional $47,885 in the ACBH YFS Fund (Fund 170).

H. MENTAL HEALTH SERVICES AGREEMENTS - Authorization to Contract with Alameda County Behavioral Health and La Familia to provide Mental Health Services; and Appropriate Additional Funds and Making Findings of CEQA Exemption
Contact Persons:

RECOMMENDATION: By motion:

1. Authorize the City Manager or her designees to execute two FY 2022/23 agreements totaling $2,449,711 including:
a. an agreement with Alameda County Behavioral Health (ACBH), in the amount of $2,194,260 to provide mental health services; b. an agreement with LaFamilia, in the amount of $255,451 to provide mental health counseling services to adults transitioning to work.

2. Appropriate an additional $38,557 in the ACBH Aging and Family Services Fund (Fund 104), an additional $114,240 in the ACBH Youth and Family Services Fund (Fund 170), and an additional $23,223 in the ACBH FRC Behavioral Health Fund (Fund 172).

June 14, 2022 Fremont City Council Page 6
I. FISCAL YEAR 2020/21 FINANCIAL AUDIT - Transmittal and Acceptance of Fiscal Year 2020/21 Audit Reports
Contact Persons:

Name: Hein Hein Hein Myat David Persselin
Title: Accounting Manager Finance Director
Dept: Finance Department Finance Department
Phone: 510-494-4602 510-494-4631
E-Mail: [email protected] [email protected]

RECOMMENDATION: Receive financial audit reports for Fiscal Year 2020/21 and file.

3. Ceremonial Items
A. Proclamation: Recognizing Juneteenth, June 19, 2022
B. Proclamation: Elder Abuse Awareness Month
C. Resolution: Honoring John A. Dutra
D. Resolution: School Resource Officer Program

4. Public Communications
A. Oral and Written Communications
INDUSTRIAL DEVELOPMENT AUTHORITY - None.

PUBLIC FINANCING AUTHORITY - None.

CONSIDERATION OF ITEMS REMOVED FROM CONSENT CALENDAR

5. Scheduled Items
A. SECOND PUBLIC HEARING AND ADOPTION OF FY 2022/23 OPERATING BUDGET AND APPROPRIATIONS LIMIT - Second Public Hearing (Published Notice) and Adoption of the FY 2022/23 Operating Budget and Appropriations Limit
Contact Persons:

Name: David Persselin
Title: Finance Director
Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]

RECOMMENDATIONS:

1. Hold a public hearing on the proposed operating budget for FY 2022/23.

2. Adopt a resolution approving the City of Fremont FY 2022/23 Operating Budget.

3. Adopt a resolution creating an appropriations limit of $877,488,604 for FY 2022/23.

June 14, 2022 Fremont City Council Page 7

6. Report from City Attorney - None.

7. Other Business - None.

8. Council Communications
A. Council Referrals - None.

B. Oral Reports on Meetings

9. Adjournment
June 14, 2022 Fremont City Council Page 8
June 14, 2022 Fremont City Council Page 9

ACRONYMS

ABAG Association of Bay Area Governments GIS Geographic Information System ACE Altamont Commuter Express GPA General Plan Amendment ACFCD Alameda County Flood Control District HARB Historical Architectural Review Board ACTC Alameda County Transportation
Commission
HBA Home Builders Association
HRC Human Relations Commission
ACWD Alameda County Water District ICMA International City/County Management Association ARB Art Review Board
BAAQMD

BART
Bay Area Air Quality Management
District
Bay Area Rapid Transit District
JPA Joint Powers Authority
LLMD Lighting and Landscaping Maintenance
District
BCDC Bay Conservation & Development
Commission
LOCC League of California Cities
LOS Level of Service
BMPs Best Management Practices MOU Memorandum of Understanding BMR Below Market Rate MTC Metropolitan Transportation
Commission
CALPERS California Public Employees’ Retirement
System
NEPA
NLC
National Environmental Policy Act
National League of Cities
CBC
CDD
California Building Code
Community Development Department
NPDES National Pollutant Discharge Elimination
System
CC & R’s Covenants, Conditions & Restrictions NPO Neighborhood Preservation Ordinance CDBG Community Development Block Grant PC Planning Commission CEQA California Environmental Quality Act PD Planned District CERT Community Emergency Response Team PDA Priority Development Area CIP Capital Improvement Program PUC Public Utilities Commission CNG Compressed Natural Gas PVAW Private Vehicle Accessway COF City of Fremont PWC Public Works Contract
COPPS Community Oriented Policing and Public
Safety
RFP Request for Proposals
RFQ Request for Qualifications
CSAC California State Association of Counties RHNA Regional Housing Needs Allocation CTC California Transportation Commission ROP Regional Occupational Program dB Decibel RRIDRO Residential Rent Increase Dispute
Resolution Ordinance DEIR Draft Environmental Impact Report DU/AC Dwelling Units per Acre RWQCB Regional Water Quality Control Board EBRPD East Bay Regional Park District SACNET

Southern Alameda County Narcotics
Enforcement Task Force EDAC Economic Development Advisory Commission (City)
EIR
EIS
Environmental Impact Report (CEQA)
Environmental Impact Statement
STIP State Transportation Improvement
Program

ERAF
(NEPA)
Education Revenue Augmentation Fund
TCRDF Tri-Cities Recycling and Disposal Facility
TOD Transit Oriented Development
EVAW
FAR
Emergency Vehicle Accessway
Floor Area Ratio
TS/MRF Transfer Station/Materials Recovery
Facility
FEMA Federal Emergency Management Agency UBC See CBC
FFD Fremont Fire Department VTA Santa Clara Valley Transportation Authority
FMC Fremont Municipal Code WMA Waste Management Authority FPD Fremont Police Department
FRC Family Resource Center ZA Zoning Administrator
FUSD Fremont Unified School District ZTA Zoning Text Amendment

June 14, 2022 Fremont City Council Page 10

UPCOMING MEETING AND CHANNEL 27

BROADCAST SCHEDULE
Date Time Meeting Type Location
Cable
Channel
27 June 14, 2022 5:30 p.m. City Council Closed Session
Meeting
Council
Chambers Live
June 14, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
June 21, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
June 28, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting City Hosts Live
June 28, 2022 No 7 PM City Council
Meeting (4th Tuesday)
July 5, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
July 12, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
July 19, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
July 26, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting City Hosts Live
August Recess – No City Council Meetings
September 6, 2022 7:00 p.m. City Council Meeting Council Chambers Live
September 13, 2022 7:00 p.m. City Council Meeting Council Chambers Live
September 20, 2022 7:00 p.m. City Council Meeting Council Chambers Live
September 27, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting FUSD Hosts Live
Monday,
October 3, 2022 5:30 p.m. Joint City Council/FUSD
Meeting
FUSD
Hosts Live
October 4, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
October 11, 2022 7:00 p.m. City Council Meeting Council Chambers Live
October 18, 2022 7:00 p.m. City Council Meeting Council Chambers Live
October 25, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting City Hosts Live

Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: City Attorney's Office
Fremont, CA 94538 Category: Plans, Policies and Studies

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4622) DOC ID: 4622
Updated: 5/31/2022 8:47 PM by Susan Gauthier Page 1
AB 361 - Consider Making Findings to Allow the City Council and the Legislative Bodies of the City of Fremont to Continue Holding Meetings via Videoconference pursuant to AB 361
Contact Persons:

Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Div/Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]

Executive Summary: In order for the City Council and the City’s legislative bodies to continue holding meetings by teleconferencing pursuant to Government Code Section 54953(e) (AB 361), the City Council needs to reconsider the circumstances of the state of emergency created by the COVID-19 pandemic every 30 days and find that the state of emergency continues to directly impact the ability of the members to meet safely in person.

BACKGROUND: On September 16, 2021, Governor Newsom signed AB 361 amending the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. AB 361 builds upon Executive Order N-29-20, issued by the Governor on March 17, 2020, which relaxed the teleconferencing requirements of the Brown Act to facilitate virtual meetings during the COVID-19 declared emergency.

AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions, including the requirement that meetings be conducted in physical locations, if the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies: (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the agency has already determined or is determining whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

To continue meeting remotely pursuant to AB 361, an agency must make periodic findings that: (1) the body has reconsidered the circumstances of the declared emergency; and (2) the emergency impacts the ability of the body’s members to meet safely in person, or state or local officials continue to impose or recommend measures to promote social distancing. These findings should be made not later than 30 days after teleconferencing for the first time pursuant to AB 361, and every 30 days thereafter.

DISCUSSION/ANALYSIS: The City Council and the City’s other legislative bodies have met using teleconferencing throughout the COVID-19 pandemic to protect the health and safety of the public and staff. The factual circumstances exist for the City to continue to hold meetings pursuant to AB 361. Specifically, the Governor’s declared State of Emergency in response to the COVID-19 pandemic (the “Emergency”) is still in place. In addition, the City of Fremont COVID-19 Employee Resource Guide requires physical distancing for City employees, customers and visitors, to the extent possible. And finally, the Centers for Disease Control and Prevention continue to advise that COVID-19 spreads more easily

2.C
Packet Pg. 11
Staff Report (ID # 4622) Meeting of June 14, 2022
Updated: 5/31/2022 8:47 PM by Susan Gauthier Page 2
indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than 6 feet apart from others for longer periods of time. Therefore, due to the ongoing COVID 19 pandemic, the need to promote social distancing to reduce the likelihood of exposure to COVID-19, and the imminent risks to the health or safety of meeting attendees, the Emergency impacts the ability of the City Council and the legislative bodies of the City to meet safely in person.

FISCAL IMPACT: None.

ENVIRONMENTAL REVIEW: N/A

ATTACHMENTS: None.

RECOMMENDATION: Staff recommends that the City Council make the following findings in order to continue holding videoconference meetings for the City Council and the City’s legislative bodies:

1. The City Council has reconsidered the circumstances of the COVID-19 state of emergency;

2. The state of emergency continues to directly impact the ability of the members to meet safely in person; and

3. Staff is directed to schedule reconsideration of these findings at the regularly scheduled City Council meeting on July 12, 2022.

2.C
Packet Pg. 12
Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Community Development
Fremont, CA 94538 Category: Agreements and Contracts

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4619) DOC ID: 4619
Updated: 6/8/2022 12:26 PM by Susan Gauthier Page 1
e-PLAN, INC. MASTER LICENSING AGREEMENT - Authorize the City Manager or Designee to Execute a Master Licensing Agreement with e-Plan, Inc., for the City’s Electronic Plan Review System for a Three-year Term and a Not-to-Exceed amount of $493,680 and Making Findings of CEQA Exemption Contact Persons:

Name: Jennifer Craven Sanford Taylor
Title: Business Manager IT Director
Div/Dept: Community Development IT Services
Phone: 510-494-4554 510-494-4802
E-Mail: [email protected] [email protected]

Executive Summary: The City’s agreement for electronic plan review software and services will expire in August 2022. The purpose of this staff report is to request authorization for the City Manager to execute a new three-year master licensing agreement with the vendor, e-Plan, Inc.

BACKGROUND: Since March 2021, all new permit requests requiring plan review have been completed electronically via the City’s electronic plan review (ePR) system. The ePR system, provided by e-Plan, Inc., is a cloud-hosted software-as-a-service (SaaS) product.

The current agreement with e-Plan, Inc. expires in August 2022.

DISCUSSION/ANALYSIS: To continue the ePR services with e-Plan, Inc., staff recommends establishing a new master licensing agreement to continue the electronic plan review hosted SaaS and subscription services for an additional three-year term. Software license renewals where the City has previously procured software systems are exempt from the competitive procurement requirements of the City’s municipal code (Section 3.20.280).

The not-to-exceed compensation for the recommended three-year term of the agreement is $493,680, with an annual cost of $164,560. This includes 85 licenses for named users at $1,600 each, which is a reduction from the $1,700 per license fee for the prior agreement.

In addition, the cost of the middleware (Velosimo) used to connect Accela to ePlanSoft is $28,560 per year. There is no cost adjustment for the middleware from the prior agreement.

FISCAL IMPACT: No General Fund monies are used to pay for permitting-related software, including the electronic plan review software. Funding for the first year of the agreement was included in the Information Technology Operating Fund (Fund 620) as part of the FY 2022/23 Proposed Operating Budget. The second and third years of the agreement will be requested through the Information Technology Services Department operating budget as part of the City’s annual budget process. The annual costs are charged to the various Development Services Center users through the ITS cost allocation process.

ENVIRONMENTAL REVIEW: The proposed action is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2), Section 15378(b)(4)

2.D
Packet Pg. 13
Staff Report (ID # 4619) Meeting of June 14, 2022
Updated: 6/8/2022 12:26 PM by Susan Gauthier Page 2
and/or Section 15378(b)(5), as it is a fiscal or administrative activity of a governmental entity that will have no direct or indirect physical impact on the environment, and/or CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment per, each as a separate and independent basis for CEQA compliance.

ATTACHMENTS: None.

LINKS: None.

RECOMMENDATION: Authorize the City Manager or Designee to execute a Master Licensing Agreement with e-Plan, Inc., for electronic plan review SaaS services for a three- year term and a not-to-exceed compensation of $493,680.

2.D
Packet Pg. 14
Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Police Department
Fremont, CA 94538 Category: Grants

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4620) DOC ID: 4620
Updated: 6/9/2022 3:43 PM by Alberto Quintanilla Page 1 SPECIAL EVENT SPONSORSHIP PROGRAM – Approve Special Event Sponsorship Awards for FY 2022/23
Contact Persons:

Name: Amy Gee Matthew Snelson
Title: Management Analyst II/Public
Affairs Coordinator
Police Captain
Div/Dept: Police Department Police Department
Phone: 510-790-6967 510-790-6874
E-Mail: [email protected] [email protected]

Executive Summary: The City Council established the Special Event Sponsorship Program (SESP) in 2019 to support local organizations that host large-scale community events. Staff have completed the review and sponsorship award process for the special event organizers who submitted applications for FY 2022/23. Staff is recommending that the City Council approve the special event sponsorship awards described in this report.

BACKGROUND: On December 3, 2019, the Fremont City Council approved the SESP in response to requests for City financial support by special event organizers. FY 2020/21 would have been the first year to implement SESP. However, due to the COVID-19 pandemic, all major events and the sponsorship program were cancelled.

The City reinstated the sponsorship program for FY 2021/22 and City Council approved a total of $250,000 funding for seven special events that applied to the program. Due to impacts of COVID, some events were canceled and/or had a reduction in scale. At the time of this report, several events scheduled to occur in FY 2021/22 have not taken place.

Finances and final reports for these events are available 90 days after the event. It is anticipated that a total of $123,700 of $250,000 approved for FY 2021/22 will be disbursed and/or reimbursed to event organizers for eligible expenses.

In Spring 2022, the City opened the SESP application process for FY 2022/23, with the expectation that all historically established community events in the City will resume at full scale. The City of Fremont permits special events and activities that are consistent with the State and County’s health guidelines.

The FY 2022/23 Proposed Operating Budget includes $300,000 of funding for the SESP.

The SESP establishes eligibility for special events that have previously been permitted and held successfully (“established events”) and that utilize City services. Per the policy, established events may request up to 50% of their overall budget or the total estimated cost for City services, whichever is higher. Sponsorship awards are effective July 1 of each year, contingent upon budget approval.

DISCUSSION/ANALYSIS: The FY 2022/23 special event sponsorship application process was open on February 11, 2022 with a deadline of April 11, 2022. Historically established

2.E
Packet Pg. 15
Staff Report (ID # 4620) Meeting of June 14, 2022
Updated: 6/9/2022 3:43 PM by Alberto Quintanilla Page 2 events were contacted directly regarding the program. Information was also posted on the City’s website, Fremont Connection Newsletter, and social media channels.

Applications Received and Eligibility Review: The City received nine SESP applications. Event dates are subject to change due to staffing needs and/or conflicts with other major functions.

1. Fremont Street Eats (every Friday from July 1 – Oct 21, 2022, and May/June 2023)

2. 4th of July Parade (Monday, July 4, 2022)

3. Festival of Arts (Saturday, August 6 and Sunday, August 7, 2022)

4. Niles Car Shows (Sunday, August 14, 2022 and Sunday, May 21, 2023)

5. Festival of India (Saturday, August 20 and Sunday, August 21, 2022)

6. Niles Antique Fair (Sunday, August 28, 2022)

7. Gurdwara Diwali and New Year’s Eve (Monday, October 24, 2022 and Saturday, December 31, 2022)

8. Festival of Lights (Friday, November 25, 2022)

9. Burger and Brew (Saturday, May 20, 2023)

Applications were reviewed and scored for purposes of establishing eligibility. Staff from five City departments participated in the review process: Police, Economic Development, Community Services (Recreation), Public Works (Transportation Engineering), and Community Development (Planning). Reviewers provided scores and comments on the Narrative/Significance and Financial Capabilities/Event Execution sections of each application. Events with final scores above 7.0 were considered responsive. All nine applicants scored above 7.0 and are eligible for funding.

Sponsorship Award Allocation and Funding Recommendation: Staff used the estimated cost information provided by the applicants to calculate the maximum allocation allowed under the SESP rules: 50% of the overall event budget or the total estimated cost of City services, whichever is greater. The maximum allocation for all applicants totals $872,556.

Funds are initially allocated to each eligible applicant pro-rata based on the estimated cost of City services. City services include, but are not limited to, those provided by Police, Fire, Street Maintenance, Parks and Recreation, and City staff or City-contracted vendors.

Once the cost of City services has been covered for all applicants, any remaining funds are allocated pro-rata based on each applicant’s remaining unfunded 50% of the total event cost.

Using this allocation method, and rounding up to the nearest $100, staff is recommending City Council award the funding amounts shown in the far-right column of the table below.

Special Event Maximum
Allocation
City Services
Cost Estimate
Proposed
Award
4th of July Parade 45,800 28,920 29,000
Fremont Street Eats 32,565 8,580 8,700
Festival of Arts 404,170 116,450 116,700 Festival of India 287,830 77,830 78,100
Niles Car Show 12,770 3,040 3,100
Niles Antique Fair 21,170 21,170 21,200

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Staff Report (ID # 4620) Meeting of June 14, 2022
Updated: 6/9/2022 3:43 PM by Alberto Quintanilla Page 3 Gurdwara Diwali & New Years’ Eve 10,740 10,280 10,300 Festival of Lights 19,670 16,240 16,300
Burger & Brew 37,841 16,570 16,600
Total $872,556 $299,080 $300,000

Disbursement of Sponsorship Awards: The SESP is a reimbursement grant that is intended to cover some or all of an event’s City services costs and possibly some portion of the event’s additional costs. After the event has been held, City staff will confirm the actual cost of the City services provided using the hourly rate schedule for special events previously adopted by the City Council. The event’s sponsorship award will be credited against the actual cost of City services. The event organizer is responsible for paying the City any actual costs in excess of the sponsorship award amount.

Event organizers have until 90 days after the event to submit a final report (including a post-event evaluation, attendance estimate, and documentation of actual costs). To the extent the sponsorship award amount exceeds the actual cost of City services, the City will reimburse the event organizer for eligible event-related expenses. Eligible event- related expenses may include City-approved third-party traffic control vendors for street closures, or City facility or rental fees. The combination of credit for the cost of City services and reimbursement for other event-related expenses will not exceed an event’s sponsorship award amount.

FISCAL IMPACT: A General Fund allocation for the SESP in the amount of $300,000 was included in the FY 2022/23 Proposed Operating Budget.

ENVIRONMENTAL REVIEW: The Special Event Sponsorship Program, an administrative government activity, is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The Special Event Sponsorship Program does not involve the approval of special events or individual projects. Thus, the Special Event Sponsorship Program will clearly not have a significant effect on the environment and CEQA does not apply.

ATTACHMENTS:
• Special Event Sponsorship Program Guidelines and Application

RECOMMENDATION: Allocate FY 2022/23 special event sponsorship awards to the nine eligible events as specified in this report.

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FY 2022-2023 SESP Guidelines and Application Checklist Page 1 of 8

FY 2022/2023 Special Events Sponsorship Program
Guidelines and Application Checklist

Application Deadline: Monday, April 11, 2022 at 12:00 p.m. PT Late and/or incomplete submissions will not be accepted Overview and Goals
The Special Events Sponsorship Program (SESP) offers financial assistant to support large-scale special events in the City of Fremont. These events include festivals, parades, and community celebrations that require overtime or specialty staff support from the Police Department, Fire Department, Public Work Department (Street Maintenance), or Community Services (Parks and Recreations) on the days of the event. When funds are available and as approved, SESP awards will be made once a year through a competitive application and review process. The program aims to foster successful high-impact community events that:

1. Enhance economic development;

2. Encourage community participation;

3. Promote arts and cultural growth; and

4. Provide a rich variety of festivities for residents and visitors.

The program is not intended to support events where the primary purpose is fundraising for a cause.

SESP awards are meant to partially offset the cost of city services by providing financial support for events. Award amounts may vary per event per year. Organizers could request up to 50% of the anticipated total event cost or 100% of the anticipated cost of city services, whichever is higher. Award amounts may be less than the amount requested and any awards are subject to Council approval and/or the availability of funding.

Administration
Fremont Police Department manages the administrative process of the SESP, as the department also manages the permitting process for high-impact special events in the City. The special event sponsorship application and the special event permit application will be processed together in Spring of each year for events taking place in the upcoming fiscal year. SESP applications will be reviewed by a sub-committee including City of Fremont staff from various departments.

Funding and Grant Use Restrictions
The amount of available funding may vary per year depending on economic outlook and available resources. Past grant awards are no assurance of future awards. Available funds are subject to City Council approval. The City may terminate the program at any time due to unforeseen circumstances.

Grant funds must be used for event-related expenses only and not for operating deficit, administrative costs, or other organizational costs unrelated to production of the event or for any capital equipment purchases. No part of the grant shall be used to promote or inhibit religion nor for any political advocacy.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 2 of 8 Eligibility
To be considered for SESP, the event and the event organizer must meet ALL of the following eligibility criteria. Note that meeting the below criteria does not guarantee event sponsorship. Eligible events must submit an application to the SESP each year. Final funding decisions are recommended by staff for council approval. Applications will be rejected if ANY of the following criteria is not met:
• Event Criteria
o Event takes place between July 1, 2022 and June 30, 2023 in the City of Fremont; o Event is not conducted primarily as a fundraiser for a cause, and is not intended to convey a religious message nor advocate a political position; o Event must support all four of the SESP program goals; o Event must require the use of City services on the days of the event, specially overtime or specialty work from Police, Fire, Public Works, or Community Services. o Event must have other sources of funding sufficient to cover at least 50% of all anticipated event-related expenses;
• Event Organizer (Organization) Criteria
o Event organizer must be in good standing with the City of Fremont; o Event organizer must be a legally registered 501c(3) non-profit organization or 501c(6) business entity;
o Event organizer must have a valid City of Fremont business tax certificate, or a Fremont business tax exemption from the City’s Finance Department; and o Event organizer must be established with at least one year of successful history with the City of Fremont; new events hosted by new organizers are not eligible until year two.  Successful history is further defined as those that have adhered to all special event permitting conditions and fulfillment of all event obligations, including payment to vendors and the City of Fremont. In addition, organizer’s events are those that have not resulted in an adverse impact in the community, such as the receipt of significant complaints from residents or businesses.

Application Requirement
To be considered for an award, a complete special event sponsorship program (SESP) application per event per fiscal year must be submitted together with the special event permit application. Refer to the application checklist below for information about each required document. Note that events applying for SESP is subject to an earlier deadline for the special event permit application. Partial, incomplete or late applications will not be considered. A complete SESP application packet consists all documents required for the Sponsorship Program as well as the Special Event Permit. Refer to the next section for a complete checklist of documents required.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 3 of 8 FY 2022/2023 Special Event Sponsorship (SESP) Application Checklist Items 1-4 are related to the sponsorship application, and items 5 – 15 are related to the event permit application. For consideration of event sponsorship, all required documents for sponsorship and permit are due together by Monday, April 11, 2022 at 12:00 p.m. Incomplete applications will not be accepted.

☐ 1. Special Event Sponsorship Program (SESP) Application

☐ 2. Event Organizer Financial Statement and Tax Return for prior two (2) years: Calendar Year 2021 and Calendar Year 2020. If 2021 Tax Return has not be filed, the City will accept Year 2020 and 2019.

☐ 3. Copy of currently valid 501c(3) or 501c(6) registration from the IRS

☐ 4. Copy of valid City of Fremont business tax certificate for 501c(6) organizations, or confirmation of Fremont business tax exemption for 501c(3) organizations from the City’s Finance Department • It is the applicant’s responsibility to obtain tax exemption confirmation from the Finance Department (email confirmation is acceptable.)

☐ 5. Special Event Permit Application for High Impact Events • All sections must be completed; answers such as “same/TBD” are not acceptable.

☐ 6. Event Program to include times, list of activities, and name of anticipated special VIPs or guests.

☐ 7. Event Venue Contract/Permission, if applicable, indicating property usage permission.

☐ 8.1. Event Site Plan (Special Event Permit Application Attachment A) that clearly indicates set up of event, stages, bleachers, tents, canopies, booths, rides, portable toilets, location of storm drains, trash/recycling/compost receptables, and other equipment or set up. ☐ 8.2. Tent(s) & Stage(s) Plan required for stages, grandstands, bleachers, special seating, enclosed tents > 400 ft, or open tents > 700 feet. ☐ 8.3. California Engineer Approved/Stamped Plan (drawing with specifications and measurements) for the event with pertinent information on tents/stages/bleachers, etc., including details on connecting ramps, rotary devices, and/or lifts. ☐ 8.4. Note: If a tent/stage permit is required, applicants must use the City's online Citizen
Access portal to submit such requests in addition to submitting the sponsorship and permit application. Additional materials and fees apply.

☐ 9. Traffic Plan/Road Detour Plan (Special Event Permit Application Attachment B), if applicable, must indicate road closures, location of cones/barricades, available entry points, and flow of traffic. If shuttles are used, the traffic plan must also indicate type, route, frequency, and drop-off location(s). Traffic plan for road closures must be developed from one of the City’s approved Traffic Vendors.

☐ 10.1. Parking Plan (Special Event Permit Application Attachment C) that indicates parking availability, location of emergency vehicle access, disabled parking, and any available bicycle parking or ride drop-off designated area.
☐ 10.2. If private parking lots are used, written permission from the property is required.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 4 of 8 ☐ 11. Vendor Information (Special Event Permit Application Attachment D) must include all anticipated major vendors, particularly those serving the event, such as those for stages, security, portable toilets, etc. Business vendors participating at the event can be added two weeks prior to the event.

☐ 12. Public Safety and Crowd Management Plan, required for 1,000+ attendance.

☐ 13. Private Security Plan, if private security firm will be hired for the event.

☐ 14. Daily ABC License Application required if alcohol is served.

☐ 15. Special Event Permit Application Fee of $200

The following materials can be submitted at time of application submission. If pending, they can be submitted at a later time. Applicants will be notified of the submission deadline for these documents.

☐ 16. Finalized Event Program including confirmed VIP Guests

☐ 17.1 Certificate of Insurance for the event with at least $1 million liability insurance. ☐ 17.2 Additional Insured Endorsement for the event explicitly listing the City of Fremont as additional insured.
☐ 17.3 Certificate(s) of Insurance for each carnival ride vendor, if applicable, with at least $1 million liability insurance and all rides explicitly listed. ☐ 17.4 Additional Insured Endorsement from carnival ride insurance explicitly listing the event organizer and the City of Fremont as additional insured.

☐ 18. Alameda County Health Permit required if food is served.

☐ 19. Approved Daily ABC License required if alcohol is served.

☐ 20. Written Notification to nearby businesses and residents regarding impact of event, road closures, and/or parking.

☐ 21. Vendor Contract(s) for major services, such as stages, security, portable toilets, trash, etc.

☐ 22.1. Vendors List including information on all participating vendors. ☐ 22.2. Temporary tax license fee(s) for applicable vendors.

☐ 23. Personnel List, if applicable, listing those operating carnival rides or managing kids activities.

☐ 24. Event Deposit, if applicable.

☐ 25. Other information or materials as determined necessary by the City.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 5 of 8 FY 2022/2023 Special Event Sponsorship (SESP) Program Timeline

Description Date
SESP Opens for Application Friday, February 11, 2022
SESP Application & Special Event Permit Application Due Monday, April 11, 2022 at 12:00 p.m. PT SESP Committee Review and Scoring of Applications May 2022 Proposed Council Review and Approval Date June 2022
Outstanding event balance due to City (if applicable) 30 days after invoice date Final Report Due for Grantees 90 days after event
Sponsorship reimbursement made to applicant
(if applicable)
After completion of Final Report &
submission of receipts/documents

Application Submission Process
A copy of all application materials and documents, including check payment of $200 special event permit fee, must be submitted together in one packet to the Development Services Center*:

City of Fremont Development Services Center
ATTN: Special Event Unit
39550 Liberty Street
Fremont, CA 94538

Check Payment should be made payable to: City of Fremont

You may wish to mail in your application or physically drop off the application. If you plan to drop off your application, you may wish to make an appointment with:

Marc Cleveland
Planner, Community Development
[email protected]
(510) 494-4543

*If mailing your application, the application packet must be received (not merely postmarked) by the deadline.

It is strongly recommended that you have an electronic copy of all submitted application materials and documents. You may wish to email a copy of your materials, but your application will not be processed until a hardcopy and payment is received by the City of Fremont’s Development Services Center.

Note about Application Deadline
Applicants are strongly encouraged to submit their applications early to give themselves ample time to resolve any unexpected issues and to confirm the City’s receipt of the application prior to the deadline.

Incomplete applications will be not accepted.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 6 of 8 Plan early and DO NOT WAIT until the application deadline to call with questions or to make an appointment. Staff will be in session with previously-made appointments and will not be able to respond to same day requests or inquires.

Fees
There is no cost to apply to SESP, however, application and payment for the Special Event Permit is due at time of SESP application submission. Refer to www.fremont.gov/specialevents for more information on the Special Event Permit. If your event requires a stage or tent permit, additional documents and fees apply. Stage and tent permit and inspection fees cannot be waived and all related fees must be paid for by the applicant prior to issuance of the permit.

Public Nature of Application Materials
Applications submitted for SESP become the property of the City of Fremont and shall be regarded as public records, with the exception of those elements in the application which are defined by the applicant as business or trade secrets and designated as Confidential, Trade Secret, or Proprietary.

These elements are not required and not encouraged to be included in the application. The City shall not in any way be liable or responsible for the disclosure of any such application or portions thereof, if they are not designed as Confidential, Trade Secret, or Proprietary or if the disclosure is required under the Public Records Act. If an organization wishes to designate elements of the application as confidential, business or trade secret, they must submit a letter at the time of application identifying the specific sections of their application that should be defined as such. Although the California Public Records Act recognizes that certain information may be protected from disclosure, the City may not be in a position to establish that the information that an applicant submits is protected. If a request is made for information marked Confidential, Trade Secret, or Proprietary, the City will provide the applicant who submitted the information with reasonable notice to allow the applicant to seek protection from disclosure by a court of competent jurisdiction.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 7 of 8 Evaluation Criteria
SESP Applications will be evaluated according to the following criteria, in the context of the applicant’s overall goals and the purpose and goals of the Special Event Sponsorship Program:
• Event Narrative and Significance - 50% (Section 2 of application) o Clarity of the event’s nature, structure and vision and how well the event relates to the applicant’s mission, purpose and goals.
o How well the event components demonstrate support of SESP program goals:

1. Enhance economic development;

2. Encourage community participation;

3. Promote arts and cultural growth; and

4. Provide a rich variety of festivities for residents and visitors.

• Financial Capabilities and Event Execution – 50% (Sections 3 of application) o Ability to produce a profitable or break-even event measured on a cash basis; o Extent of diversified financial support and in-kind contributions and/or volunteer resources used to leverage the City’s grant funding;
o Ability and experience in producing a well-planned and safe event; o Depth of managerial and organizational capacity.

Rating System
When evaluating each criterion, members of the decision committee will use the following 10-point scale, which is then translated to the appropriate weight for each criterion. An application must receive an overall score of at least 7 points for funding consideration. • Exceptionally Responsive (9 –10 points)
o Considerably exceeds expectations;
o Demonstrates historical proof that performance is or will be outstanding; o Strongly merits funding.
• Very Responsive (7 - 8 points)
o Meets and somewhat exceeds expectations;
o Criterion is successfully fulfilled, and performance is above the norm; o Merits funding.
• Basically Responsive (5 - 6 points)
o Meets the generally accepted standards of the criterion; o Needs improvement in order to merit any funding.
• Minimally Responsive (3 - 4 points)
o Weak response to the criterion;
o Does not demonstrate that performance meets generally accepted standards; o Does not merit funding.
• Unresponsive (0 – 2 points)
o Fails to meet the criterion;
o Does not merit funding.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) FY 2022-2023 SESP Guidelines and Application Checklist Page 8 of 8 Appeals
An applicant may file an appeal of the SESP Decision Committee’s funding decision only if it is based one of the following circumstances:
• Required application materials that were submitted by the deadline were omitted from the materials the Committee considered during the review process; • A member of the Committee did not recuse her/himself even though s/he had a conflict of interest, as such term is defined under state law, in relation to an applicant, which should have resulted in the council member’s recusal from evaluating the application or participating in a discussion regarding the applicant.

The Committee will not consider appeals based on any other circumstances, including but not limited to:
• Correcting applicant errors and omissions in the application or review process; • Information received after the application deadline;
• Disagreements about the merits of the application relative to others the Committee considered.

Applicants must submit their appeals in writing to the City Manager’s Office within the specified time period after funding notifications have been sent. The notification will specify the deadline to file an appeal.

Final Report
SESP grantees must submit a Final Report for the event on a City-provided form (to include a post-event evaluation, attendance and final budget) no later than 90 days after the event is held. Grantees must be current on filing required reports before they can receive grant funding.

Acknowledging City Support
Grant recipients must acknowledge the City’s financial support in all appropriate materials and media.

The acknowledgement should read, “Supported in part by the City of Fremont” or similar language, unless the City is a part of a list of supporters. In the latter case, the acknowledgement may say simply City of Fremont. Grantees must display the City’s logo whenever other sponsor logos are displayed, and in accordance with City logo use guidelines.

Contact
For questions regarding the Special Event Sponsorship Program or the permitting process for high- impact special events, contact:

• Amy Gee, Management Analyst, Fremont Police Department Phone: (510) 790-6967, Email: [email protected]

For questions regarding stage and tent permits, and submission of the application contact:

• Marc Cleveland, Planner, Community Development
Phone: (510) 494-4543, Email: [email protected]

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 1 of 8 (Rev 2/9/2022)
Special Events Sponsorship Program Application
for Festivals, Parades, and Community Celebrations
Section 1: Event and Contact Information
E
vent Name: __________________________________________________________________________ E
vent Date(s): _________________________________________________________________________ E
vent Location: ________________________________________________________________________ Event Organization: ______________________________________ __ Type: ☐ 501(c)3 ☐ 501(c)6 Anticipated Attendance: Award Amount Requested: ________________ A
ddress: _____________________________________________________________________________ A
pplicant Name: _________________________________ Phone Number: ________________________ E
mail: _______________________________________________________________________________ Section 2: Event Narrative and Significance (50% of scoring weight)

2.1 In the space provided below, briefly describe the event’s nature, structure and vision and how well the event relates to your organization’s mission, purpose and goals. The description should be brief and succinct. Do not attach additional sheets.

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 2 of 8 (Rev 2/9/2022)

2.2 In the space provided below, describe how the event demonstrat e support of SESP program goals.

Do not attach additional sheets.

2.2.1 Enhance economic development

2.2.2 Encourage community participation

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 3 of 8 (Rev 2/9/2022)

2.2.3 Promote arts and cultural growth

2.2.4 Provide a rich variety of festivities for residents and visitors

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 4 of 8 (Rev 2/9/2022)
Section 3: Financial Capabilities and Event Execution (50% of scoring weight) In the space below, describe your organization’s financial capabilities and even t execution experience.

The description for each category should be brief and succinct. Do not attach additional sheets.

3.1 Ability to produce a profitable or break-even event measured on a cash basis

3.2 Extent of diversified financial support and in-kind contributions and/or volunteer resources

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 5 of 8 (Rev 2/9/2022)

3.3 Ability and experience in producing a well-planned and safe event

3.4 Depth of managerial and organizational capacity

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 6 of 8 (Rev 2/9/2022)
Section 4: Event Budget/Anticipated Expenses
Group expenses into major categories below. Specify up to five other categories. Budget must include City of Fremont Services (based on anticipated cost of City staff; email [email protected] for quote.) Section is required but will be not scored or contributed to the merit of the application.

Description Amount
City of Fremont Services (Police, Fire, Street Maintenance on day(s) of event) $ Permit Fees $
Event Staff - None City of Fremont Services $
Promotion and Marketing $
Venue $
Stage/Tent/Canopy Set Up $
Decoration/Other Site Set Up $
Supplies and Equipment $
Food/Catering $
Program/Activities/Performances $
Security $
Portable Toilets $
Trash, Recycling, Compost, and Related Services $
Other Vendors $
Other 1, specify: $
Other 2, specify: $
Other 3, specify: $
Other 4, specify: $
Other 5, specify: $
Total Anticipated Expenses $

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 7 of 8 (Rev 2/9/2022)
Section 5: Available Funding
This section is required, however, information provided will be not scored and does not contribute to the merit of the application. Applicants may request up to 50% of total event costs or 100% of City of Fremont service cost, whichever is higher. Event must have at least 50% in other funding sources Specify all available funding sources and amounts for the event . Indicate if funding is confirmed or anticipated. Include SESP Award and requested amount as an anticipated funding source. Attach additional sheets if necessary.

Description Status Amount
1: Fremont Special Event Sponsorship Program (SESP) Award ☒ Anticipated ☐ Confirmed
$
2: ☐ Anticipated
☐ Confirmed
$
3: ☐ Anticipated
☐ Confirmed
$
4: ☐ Anticipated
☐ Confirmed
$
5: ☐ Anticipated
☐ Confirmed
$
6: ☐ Anticipated
☐ Confirmed
$
7: ☐ Anticipated
☐ Confirmed
$
8: ☐ Anticipated
☐ Confirmed
$
9: ☐ Anticipated
☐ Confirmed
$
10: ☐ Anticipated
☐ Confirmed
$
11: ☐ Anticipated
☐ Confirmed
$
12: ☐ Anticipated
☐ Confirmed
$
13: ☐ Anticipated
☐ Confirmed
$
14: ☐ Anticipated
☐ Confirmed
$
15: ☐ Anticipated
☐ Confirmed
$
Total Funding: $

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) SESP Application Page 8 of 8 (Rev 2/9/2022)
S
ection 6: Event Revenue
This section is required, however, information provided will be not scored and does not contribute to the merit of the application. Specify the net revenue amount for the last two years the event occurred.

Date and Year Event Occurred Net Revenue
1: $
2: $
Section 7: Affidavit and Signature
The SESP application requires two signatures: 1) applicant, and 2) CFO or Treasu rer of Event Host Organization, unless the same person serves as both the applicant and the CFO/Treasurer for the Organization.

FFIDAVIT OF APPLICANT
I certify that the information contained in the foregoing application is true and correct to the best of my knowledge and belief. I understand that this application is made subject to the rules and regulations established by the City Council and/or the City Manager or the City Manager's designee. Applicant agrees to comply with all reporting and sponsor acknowledgement requirements if the event is awarded a grant under the Special Event Sponsorship Program . I agree to abide by all requirements and further certify that I, on behalf of the Event Organization, am also authorized to commit that organization, and therefore agree to be financially responsible for any costs and fees that may be incurred by or on behalf of the Event to the City of Fremont. I further agree to pay back any or all of the awarded grant to the City of Fremont within 30 days of notification if the event is canceled or modified significantly from the original proposed activities as determined by the SESP Decision Committee, City Council, and/or the City Manager or the City Manager’s designee.

P
rint Name of Applicant: _____________________________________ T
itle: _____________________________________________________ A
pplicant Signature: _________________________________________ Date: ______________________ P
rint Name: ________________________________________________ T
itle (select one): ☐ Chief Financial Officer ☐ Treasurer S
ignature: __________________________________________________ Date: _____________________

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Attachment: Special Event Sponsorship Program Guidelines and Application (4620 : SPECIAL EVENT SPONSORSHIP PROGRAM) Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Environmental Services
Fremont, CA 94538 Category: Agreements and Contracts

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4636) DOC ID: 4636
Updated: 6/8/2022 12:48 PM by Susan Gauthier Page 1
CURBSIDE PROCESSING AGREEMENT AMENDMENT - Authorize Amendment for Curbside Processing Compensation Effective Through Contract Term Expiration of May 31, 2026
Contact Persons:

Name: Kathleen Cote-Guarnieri Suzanne Wolf
Title: Environmental Services Manager Community Services Director Div/Dept: Environmental Services Community Services
Phone: 510-494-4583 510-494-4329
E-Mail: [email protected] [email protected]

Executive Summary: Processing of the City’s curbside recyclables is provided by BLT Enterprises at the Fremont Recycling and Transfer Station under the Curbside Recyclable Material and Curbside Organic Waste Services Agreement (Curbside Processing Agreement).

Beginning December 1, 2017, the City and BLT established a series of short-term compensation agreements with amendments 3, 4, and 5, to address extraordinary impacts on the economics of processing the City’s curbside recycling material. These extraordinary conditions began with policy changes enacted by the Chinese government (known as National Sword), which increased recycling processing costs while reducing the market value of processed material. Amendment 5 expired on December 31, 2021 and curbside material processing payments have been suspended while the parties have attempted to reach agreement on a longer-term compensation arrangement (Amendment 6).

This proposed amendment would be in effect from January 1, 2022 through May 31, 2026, for the duration of the curbside processing agreement and is designed to align future compensation with anticipated costs. It is comprised of the following three components:

• $78.00 per ton incoming material processing fee (continued from Amendment 5) • $67.00 per ton mixed paper processing fee (reduced from Amendment 5) • $55.00 per ton residue landfill payment (reduced from Amendment 5)

The ongoing cost would be approximately $160,000 per month, depending upon incoming volumes. This would be a reduction to the previous payments of approximately $178,000 per month. There is adequate funding to cover the ongoing costs as the anticipated curbside processing costs were incorporated into the 2022/2023 Solid Waste Collection Rates previously set by the City Council.

Staff is proposing the revised compensation fees be applied retroactively to material processed since January 1, 2022. This would require a lump sum payment of $649,304.60 from the Integrated Waste Management Disposal Differential fund to address volumes processed from January 2022 through April 2022. Processing fees for May 2022 and later would be paid via the existing monthly administrative process. There would be no General Fund impact.

BACKGROUND: The City has been in a compensation review process with BLT Enterprises since December 1, 2017, regarding extraordinary market conditions impacting the

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Staff Report (ID # 4636) Meeting of June 14, 2022
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processing of the City’s curbside recycling material. These conditions have been largely driven by China’s National Sword Policy, which resulted in higher processing costs to meet enhanced quality standards while depressing market revenues with reduced product demand. The volatility and uncertainty of the recycling markets created difficulties for reaching a long-term agreement, so the parties entered into a series of shorter-term compensation arrangements with Amendments 3, 4 and 5 to the curbside processing agreement.

The 3rd Amendment suspended the curbside material payment previously made to the City and established a mixed paper processing fee and landfill residue payment to BLT.

The 4th Amendment extended the 3rd Amendment compensation terms by six months while the parties negotiated the 5th Amendment terms.

The 5th Amendment established a material processing fee per incoming ton of curbside material in addition to the mixed paper processing fee and landfill residue payment that were already part of the compensation structure. The 5th Amendment compensation structure was in effect from December 1, 2019 through December 31, 2021 and included the following elements:

• $78.00 per ton processing fee for each incoming single stream ton • $86.51 per ton mixed paper processing fee
• $72.34 per ton residue landfill payment

These payments are in addition to material revenue that BLT receives for recyclable material recovered and sold in the recycling markets.

Staff anticipated that the 6th Amendment terms would revise BLT’s compensation to incorporate updated processing cost information and material revenue data.

DISCUSSION/ANALYSIS: Staff is recommending executing the 6th Amendment to the curbside processing agreement, which would be in effect for the duration of the remaining agreement term. In developing terms for the 6th Amendment, staff analyzed BLT’s operating costs for the 18-month period of July 2020 through December 2021 and material revenue data from July 2020 through March 2022. The proposed compensation would align the compensation with anticipated future costs.

Staff is recommending the payments described below be effective January 1, 2022.

• Incoming Processing Fee
o $78.00 per incoming Fremont single stream ton
o No change from 5th Amendment
o CPI adjustment incorporated into 2024 and 2026 rate setting.

• Residue Landfill Payment
o $55.00 per landfill bound residue ton
o Reduction from 5th Amendment fee of $72.34
o 2024 and 2026 rate setting adjustments will be based upon a blended index consisting of 65% of the landfill tip fee increase and 35% of the CPI index.

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• Mixed Paper Processing Fee
o $67.00 per mixed paper ton
o Reduction from 5th Amendment fee of $86.51
o An adjustment, based upon the average material revenue change per ton, will be incorporated into the 2024 and 2026 rate setting calculation.

Processing Fee Per Incoming Ton: For the 18-month period of July 2020 – December 2021, staff has calculated the average cost per ton for processing the City’s incoming recycling material to be $72.58 per ton, exclusive of any City payments for processing, residue compensation or mixed paper processing (chart below). This analysis supports continuation of the $78.00 processing fee per ton which was established in the 5th Amendment to Curbside Recycling Processing Agreement. The parties have agreed to apply a CPI adjustment factor to the processing fee as part of the 2024 and 2026 biennial rate setting process.

Processing Cost Summary
July 2020 – December 2021

Average Cost
Per Ton
Material/Other Revenue $149.73

Revenue Reduction
(excluding landfill
disposal)* $24.39
Operating Expenses $150.47
G&A $47.45
Total Facility/Processing
Expenses $222.31
Income/ (Loss) Before
City Payments ($72.58)

*landfill disposal addressed in residue landfill payment

Residue Landfill Payment: As part of the 3rd Amendment, the City incorporated a payment of $72.34 per ton for material delivered as curbside recycling but ultimately identified as residue. Staff has determined that the City residue compensation payments made July 2020 through December 2021 exceeded the costs BLT incurred to dispose of landfill bound residue. Adjustments to the payment methodology and amount per ton are needed to more accurately align projected payments with anticipated costs.

BLT provided additional data supporting its proposed residue payment of $55.00 per ton.

The City’s analysis confirmed an average cost per ton of $54.83 for the 18-month period assuming the calculation is done on landfill bound tonnage only and excludes the other residue types that are not landfilled, such as HHW (household hazardous waste), unaccounted shrink, liquid, and mixed glass processing residue. BLT has agreed to use the revised methodology to calculate the residue landfill payment. Staff is also proposing the

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2024 and 2026 rate setting adjustment be based on a blended index including 65% of landfill tip fee increase and 35% of the CPI index. This is based upon the proportion of expense associated with landfill disposal versus transportation.

Mixed Paper Processing Fee: Staff prepared an Average Net Income Per Commodity Analysis to evaluate the net income per commodity type, before and after processing fee payments, based upon average material values and average facility processing costs. Adjustments were made to reflect commodity specific expenses and revenue associated with that commodity. Staff determined that mixed paper consistently had an average net loss even after accounting for the incoming material processing fee made by the City. Staff calculated the average loss at $66.87 per ton for the review period. This calculation supports continuation of a mixed paper processing fee, but at a reduced amount to reflect some improvement in the mixed paper revenue market. Staff is proposing a revised fee of $67.00 per ton.

Mixed Paper
Per Ton
Material Revenue $64.86
Other Revenue $68.70
Less Average CRV ($58.68)
Adjusted Revenue $74.89
Facility Operating Costs $240.35
Less Average Residue Disposal ($18.04)
Less Average 3 mix glass
processing ($5.69)
Less Average Baling Wire ($2.85)
Add baling wire - baled materials $5.98
Adjusted Operating Costs $219.75
Net Before City Payments ($144.87)
City Processing Fee $78.00
Net After City Processing Fee ($66.87)

Staff is proposing to adjust the mixed paper processing fee as part of the biennial rate setting process. The adjustment will reflect the change in the average material revenue price per ton BLT receives for preceding 12-month period (July-June) compared to the material revenue incorporated into the most current mixed paper processing fee.

Retroactive Payment: Staff is recommending the revised compensation fees be applied retroactively to material processed since January 1, 2022, calculated in accordance with the terms described in the sections above. This would require payment of $649,304.60 to address volumes processed from January 2022 through April 2022. A breakdown of the calculation is provided below.

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Staff Report (ID # 4636) Meeting of June 14, 2022
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Incoming Curbside Tonnage

$5,643.37
Processing Fee Per Incoming Ton $78.00
Total Incoming Processing Fee $440,182.86

Landfill Bound Residue Tonnage

1,777.63
Landfill Residue Payment Per Ton $55.00
Total Landfill Residue Payment $97,769.58

Mixed Paper Tonnage

1,661.97
Processing Fee Per Mixed Paper Ton $67.00
Total Mixed Paper Processing Fee $111,352.16

Total Retroactive Payment Jan - April $649,304.60

FISCAL IMPACT: The disposal differential account within the Integrated Waste Management Fund (Fund 115) was established to cover solid waste disposition or processing costs that are administered by the City. Contributions to this account are determined by the City Council as part of the biennial setting of solid waste collection rates. Use of the account is established through the annual budget process and any appropriations separately approved by the City Council. Curbside material processing costs were included in the 2022/2023 solid waste rates and the FY 2021/2022 budget and have been accruing in the disposal differential account. These costs have also been included in the proposed FY 2022/2023 budget. Approving the recommended 6th amendment would not require an additional spending appropriation and no increase for rate payers would be needed.

Staff is recommending that the lump sum payment of $649,304.60 come from amounts accumulated in the disposal differential account. There would be no General Fund impact.

ENVIRONMENTAL REVIEW: Authorizing an amendment to the Recycling and Yardwaste Transfer Agreement as described this staff report is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(5) and/or Section 15378(b)(5) and as it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance..

ATTACHMENTS: None.

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payment of 649,304.60 from the Integrated Waste Management Disposal Differential Reserve for processing costs associated with curbside material delivered by the City from January 1, 2022 through April 30, 2022.

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Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4635) DOC ID: 4635
Updated: 6/8/2022 10:08 AM by Alberto Quintanilla Page 1

ALAMEDA COUNTY BEHAVIORAL HEALTH CARE SERVICES MASTER
CONTRACT - Authorization to execute a contract amendment with Alameda County Behavioral Health for Adolescent Substance Use Disorder Services provided by the Human Services Department’s Youth and Family Services Division for FY 2022/23; Appropriate Additional Funds and Making Findings of CEQA Exemption
Contact Persons:

Name: Annie Bailey Suzanne Shenfil
Title: Youth and Family Services
Administrator
Director
Div/Dept: Human Services Department Human Services Department Phone: 510-574-2111 510-574-2051
E-Mail: [email protected] [email protected]

Executive Summary: For the past ten years, Alameda County Behavioral Health (ACBH) has contracted with the City’s Human Services Department to provide outpatient Adolescent Substance Use Disorder (SUD) services for the Tri-city area. Staff recommends the City Council authorize the City Manager or her designees to renew the contract with ACBH, for FY 2022/23, in an amount not to exceed $516,881. In the proposed FY 2022/23 Operating Budget, an accompanying item on this agenda, staff has recommended the City Council appropriate $468,996 in anticipation of this contract. Staff also recommends the City Council appropriate an additional $47,885 to equal the anticipated contract total of $516,881.

BACKGROUND: Since FY 2012/13, ACBH has contracted with the Youth and Family Services Division of the Human Services Department to implement best practice models of adolescent early intervention and outpatient Substance Use Disorder (SUD) treatment services, and to hire staff with certified adolescent SUD treatment credentials and expertise.

YFS has an outstanding track record of working with at-risk adolescent and their families providing mental counseling, youth diversion at the police department for at-risk youth, parenting support and education. The division and its counseling team have long recognized the great need for substance use disorder services for adolescents and possess the knowledge and skills to help support this community need.

Since YFS assumed the program in FY 2012/13, it has developed policies and procedures based on the States Youth Treatment Guidelines, and standardized assessment protocols for the youth and families referred for services. The SUD intervention specialists conduct a family focused assessment of the youths’ and parents’ alcohol and drug abuse history.

Youth who are assessed as drug dependent receive case management and referrals to higher levels of treatment as needed, and the youth with less serious presenting problems participate in early intervention which includes individual and family meetings, groups for the youth and Multi-family groups for parents. The intervention services for youth are based on two best practice models: Why Try and the Matrix Model for Teens and Young Adults.

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In 2018, ACBH implemented a Drug Medi-Cal Organized Delivery System in Alameda County. This system is designed to increase and improve quality of services and success of client SUD treatment while decreasing other care costs. Cost savings are accomplished by generating revenue through the provision of Drug Medi-Cal (DMC) reimbursable services to eligible beneficiaries, while also increasing services for non-DMC eligible beneficiaries through other funding sources such as federal Block Grant funds.

The Human Service Department’s YFS division was awarded a master contract in early June 2018. The contract, which required the City to become a certified State Medi-Cal provider, funds three levels of adolescent SUD care: outpatient, intensive outpatient, and recovery services. It provides funding for both Medi-Cal and non-Medi-Cal eligible adolescent beneficiaries. The City became a State certified Drug Medi-Cal provider in early 2019.

DISCUSSION/ANALYSIS: Limited program services exist in the Tri-Cities for young people who have been identified with substance abuse issues. This is particularly true if the youth is from a low-income family or does not have health insurance. The YFS Substance Use Disorder program augments and compliments the City’s existing programs for at-risk youth who have been identified with substance abuse issues in the hope of reaching them before they become drug dependent. YFS program staff are committed to providing needed services and partnering with ACBH in developing these services for young people in the Tri- City area.

FISCAL IMPACT: This program will have no impact to the General Fund. The FY 2022/23 contract provides $516,881 to cover the cost of the program’s operation through June 30, 2023. As part of the proposed FY 2022/23 Operating Budget in an accompanying item, staff recommended the City Council appropriate $468,996 in anticipation of this contract. Staff is requesting the City Council increase the revenue estimate and appropriate an additional $47,885 in the ACBH YFS Fund (Fund 170) to equal the actual FY 2022/23 contract amount.

ENVIRONMENTAL REVIEW: This action is exempt from, and not subject to the requirements of the California Environmental Quality Act, Pub. Res. Code Section 21000, et seq. (CEQA) pursuant to, without limitation CEQA Guidelines Section 15378 (b)(2) and/or (5), in that it is an administrative activity that has no possibility for causing a significant effect, directly or indirectly, on the physical environment, and/or Section 15061(b)(3) in that it can be seen with certainty that the action has no potential to cause a significant effect on the environment. Each of the foregoing provides a separate and independent basis for CEQA exemption.

ATTACHMENTS: None.

RECOMMENDATIONS: By motion:

2. Increase the revenue estimate in the approved budget and appropriate an additional $47,885 in the ACBH YFS Fund (Fund 170).

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Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4634) DOC ID: 4634 C
Updated: 6/9/2022 11:00 AM by Alberto Quintanilla C Page 1 MENTAL HEALTH SERVICES AGREEMENTS - Authorization to Contract with Alameda County Behavioral Health and La Familia to provide Mental Health Services; and Appropriate Additional Funds and Making Findings of CEQA Exemption
Contact Persons:

Executive Summary: Staff recommends that the City of Fremont enter into two agreements not to exceed $2,449,711, including: (1) an agreement with Alameda County Behavioral Health (ACBH), in the amount of $2,194,260 for the Human Services Department’s Youth and Family Services (YFS) Division, Aging and Family Services (AFS) Division, and Family Resource Center (FRC) Division to provide mental health services; and (2) an agreement with LaFamilia, in the amount of $255,451, for FRC division to provide mental health counseling services, on a fee for service basis, as part of a multi-disciplinary Working Wellness Program, to adults receiving Cal WORKs benefits, who are enrolled in the Welfare to Work program and facing mental health challenges transitioning to work.

In the proposed FY 2022/23 Operating Budget, an accompanying item on this agenda, staff has recommended the City Council appropriate $2,273,690 in anticipation of these two contracts. Staff now anticipates the actual contract amounts will be higher and therefore recommends the City Council increase the revenue estimate and appropriate an additional $176,021 to equal the revised two-contract total of $2,449,711.

BACKGROUND:

ACBH Mental Health Services Contract

The YFS Division has received Medi-Cal reimbursement from ACBH for eligible mental health services provided to children and adults through its various programs since FY 1999/00.

YFS provides services to children with “full-scope Medi-Cal” (i.e., complete Medi-Cal coverage) that are funded through EPSDT, which is the joint county, state, and federal Medicaid reimbursement mechanism for services provided to children. EPSDT provides reimbursement for services based on actual costs up to the maximum allowed, which requires the development of interim reimbursement rates and a final cost settlement each year. The FY 2022/23 contract initially establishes interim reimbursement rates, which enables the City to claim reimbursement for services on a monthly basis. Any differences between the City’s actual costs and the reimbursement paid are settled through the end-of- year cost settlement process.

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Staff Report (ID # 4634) Meeting of June 14, 2022
Updated: 6/9/2022 11:00 AM by Alberto Quintanilla C Page 2 The AFS Division has provided mental health services to isolated seniors in their homes since 2008. This portion of the agreement is funded through Mental Health Services Act (MHSA), which was designed to expand and transform California’s county mental health services system. MHSA provides supplemental funding for mental health services through an additional one percent tax on individual taxable incomes of $1 million or more.

Shortly after passage of MHSA, a county-wide planning process identified a need for geriatric mental health services, specifically targeted at seniors isolated in their homes and unable to access services due to transportation and physical/mental health barriers. As a result of this identified need, the City developed the Mobile Mental Health Team to provide geriatric mental health services in southern Alameda County and thereby improve the mental health of seniors 60 years of age and older, who are 1) isolated and therefore unable to access clinic services, and 2) unable to manage independence due to physical/mental disabilities. These seniors are often at risk of institutionalization, nursing home care, hospitalization, repeated 911 calls, and emergency room visits. AFS has added a Recovery & Resiliency (R&R) step-down program and a peer support program for LGBT+ older adults.

The FRC and YFS Divisions will continue to provide Adult Outpatient Therapy services to adults with moderate to severe mental health issues. Services will be provided by licensed staff, Associate Social Workers and graduate clinical interns.

La Familia Contract

Since 2001, the FRC Division has collaborated with Alameda County to form a multi- disciplinary and multi-agency Family Service Team (FST) for clients with multiple issues, who are receiving public assistance through CalWORKs. The City has provided mental health and wrap-around services, helping participants move from welfare to work.

The county re-bid these contracts for FY 2019/20 and required providers to serve a much larger geographic area of the county which included the Tri-Cities, the Tri-Valley area, Hayward and San Leandro. Together, the City and La Familia submitted a successful application under a new program name, Working Wellness Program, with La Familia as the lead agency and the City as a subcontractor, to provide these services to an expanded south county group of CalWORKs participants.

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Staff Report (ID # 4634) Meeting of June 14, 2022
Updated: 6/9/2022 11:00 AM by Alberto Quintanilla C Page 3 DISCUSSION/ANALYSIS:

The YFS Division, in FY 2022/23, will provide approximately 6,300 service hours in the following categories:

• Healthy Choices School-Site Counseling Services at Fremont school sites; • The Infant Toddler Program, which serves families with children who are five years old and younger. The program includes the Early Connections project, which includes a full-time Family Partner that promotes family-driven mental health care for children;
• The Youth Service Center, which serves youth with mental health needs and their families;
• The Truancy Intervention and Probation Youth Program, which serves pre-delinquent and delinquent youth and their families; and
• Outpatient Adult Mental Health brief therapy services (the AFS and FRC division will provide additional support in providing these services).

The AFS Senior Mobile Mental Health Program provides mental health services to a minimum of 55 clients a year in order to improve their ability to live safely in the community. An additional 10 clients are supported in Recovery and Resiliency program, a ‘step down’ program that offers a transition to Senior Mobile Mental Health Program clients.

Together these two programs will provide 1,507 hours of outpatient services, which will include 500 hours of medication support, and an additional 176 hours of outreach and engagement. The team is multi-disciplinary, consisting of a part-time psychiatrist, part – time physicians’ assistant, licensed counselor and clinical supervisor. The team visits isolated seniors in their own homes to diagnose their mental status and assess their need for mental health services. The treatment team works with the seniors, and where possible their family, to develop a treatment plan that may include prescribing and monitoring psychotropic medications, providing counseling, and referring seniors to other resources as needed. The Mobile Mental Health team works closely with the City’s senior case management program and Adult Protective Services, and coordinates home delivered meals and inpatient hospitalization, if needed.

In addition, AFS will provide a Mental Health Peer Coaching program to LGBTQ+ seniors.

The peer model was originally developed to reduce loneliness and increase self-efficacy among older adults (at least 60+) with severe to moderate mental illness. The model had positive outcomes that improved both coaches and the peer to have emotional, mental and physical stability with supportive environment. The peer support program was expanded to target LGBTQ+ population in FY 2016/17. The program includes process of engaging, empathetic listening, encouraging and educating LGBTQ+ older adults around enhancing wellness and preventing isolation and reducing the stigma often experienced by LGBT+ older adults.

The FRC Division assists clients who are on CalWORKs in removing barriers to employment. The FRC Working Wellness program provides a coordinated and integrated system of support for clients and their families, which may include health, substance abuse and mental health services, as well as educational and job search assistance, aimed at helping them to exit the CalWORKs system. The model invites the Cal WORKs participant to be an active member of their treatment team. This program utilizes the IPS model of Employment Services, provided by IPS staff from La Familia. In FY 2022/23, the FRC will

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Staff Report (ID # 4634) Meeting of June 14, 2022
Updated: 6/9/2022 11:00 AM by Alberto Quintanilla C Page 4 provide approximately 903 hours of counseling and 267 hours of case management services to CalWORKs clients working with the FST.

The YFS and FRC divisions will provide 936 hours of service to 30 unduplicated clients in the Adult Outpatient Therapy program, referred by ACCESS.

FISCAL IMPACT: Funding under these agreements offsets the costs of full-time mental health professionals, clinical supervision, clerical support costs and City overhead expenses.

While the reimbursement rates for the fee-for-service portions of the agreements may vary between the contracts and cost settlement, the total maximum amount for which the City can be reimbursed remains at $2,449,711. As part of the FY 2022/23 Operating Budget, staff anticipated these program contracts would total $2,273,690. Staff is requesting a total of $176,021 in additional appropriations in three funds to match the actual total of the two contracts.

FY 2022/23 Additional Appropriation Request

Division Fund
Original
Anticipated
Revenue
Contract
Total
Additional
Appropriation
Request
AFS 104 795,068 833,626 38,558
YFS 170 1,246,394 1,360,634 114,240
ACBH Contract: $2,041,462 $2,194,260 $152,798
FRC LaFamila Contract: 172 $232,228 255,451 23,223 2,273,690 2,449,711 $176,021

ENVIRONMENTAL REVIEW: This action is exempt from and is not subject to review under the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines section 15061 and/or 15378(b)(2) and/or (5) as the activities contemplated are organizational activities of government that will not result in direct or indirect physical changes in the environment, each of the foregoing providing a separate and independent basis for CEQA exemption. .

ATTACHMENTS: None.

RECOMMENDATION: By motion:

1. Authorize the City Manager or her designees to execute two FY 2022/23 agreements totaling $2,449,711 including:
a. an agreement with Alameda County Behavioral Health (ACBH), in the amount of $2,194,260 to provide mental health services;
b. an agreement with LaFamilia, in the amount of $255,451 to provide mental health counseling services to adults transitioning to work.

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Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Presentations

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4633) DOC ID: 4633
Updated: 6/9/2022 3:41 PM by Alberto Quintanilla Page 1 FISCAL YEAR 2020/21 FINANCIAL AUDIT - Transmittal and Acceptance of Fiscal Year 2020/21 Audit Reports
Contact Persons:

Name: Hein Hein Hein Myat David Persselin
Title: Accounting Manager Finance Director
Div/Dept: Finance Department Finance Department
Phone: 510-494-4602 510-494-4631
E-Mail: [email protected] [email protected]

Executive Summary: The independent audit of the City’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021 by the certified public accounting firm of Macias Gini & O’Connell LLP was completed on December 28, 2021 and posted to the City website. The Single Audit Report, which is required for the City’s major federal programs, was completed by the auditor on May 20, 2022. In addition, there are other audits that the City is required to undergo; these are generally financial and compliance audits of different sources of funds that the City receives. All of these audits and procedures resulted in unmodified (“clean”) opinions from the City’s independent auditors. Staff recommends that the City Council receive and file the audit reports.

BACKGROUND: Best financial practices as well as various financing covenants and regulations associated with restricted funding sources require the City to prepare and publish a complete set of financial statements each year, prepared in conformance with generally accepted accounting principles (GAAP). These financial statements, referred to as the Annual Comprehensive Financial Report or “ACFR”, are also audited by a firm of licensed certified public accountants. The ACFR for the fiscal year ended June 30, 2021 has been prepared by the City and audited by the certified public accounting firm of Macias Gini & O’Connell LLP (MGO). The ACFR and audit of the City’s financial statements were completed and posted on the City’s website on December 28, 2021, with the link provided to the City Council.

MGO has issued an unmodified (“clean”) opinion on the ACFR, which states that the financial statements are presented fairly in all material respects. In addition to the opinion letter included in the ACFR document, MGO has prepared a separate Report to the City Council.

The purpose of the MGO Report is to communicate the scope of audit procedures performed, significant findings, and other information, such as any disagreements with management, audit adjustments, and significant estimates that are not communicated in the audited financial statements.

Following completion of the ACFR, it was submitted to the Government Finance Officers Association (GFOA) Certificate for Excellence in Financial Reporting program. The GFOA is a nationally recognized nonprofit professional association serving more than 20,000 finance professionals in the United States and Canada, and the Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

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Staff Report (ID # 4633) Meeting of June 14, 2022
Updated: 6/9/2022 3:41 PM by Alberto Quintanilla Page 2 In addition to the audit of the City’s financial statements and the MGO Report to the City Council, MGO also prepared a compliance report for each of the City’s major federal programs, the City’s internal controls over compliance, and the City’s schedule of expenditures of federal awards. This report, referred to as the Single Audit Report, is required under the audit provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which applies to all governments that expend $750,000 or more per fiscal year in federal grant awards. In FY 2020/21 the City’s federal expenditures totaled $13.3 million.

The Single Audit Report is specifically designed to assure federal grantor agencies from which the City receives funds that internal controls and compliance with the regulations are maintained, and that appropriate financial statements are properly prepared and submitted when due. The Single Audit Report was completed by MGO on May 20, 2022, with an unmodified opinion of compliance for all major grant programs and a finding of no material internal control weaknesses. If the auditors had found any material internal control weaknesses, they would have been required to report those directly to the City Council and to the federal government.

The FY 2020/21 audit and related reports indicate the City continues to have no material internal control weaknesses.

DISCUSSION/ANALYSIS: The City’s financial statements provide information about the finances of the City in its entirety, as well as information about individual funds. The ACFR is organized into the three sections summarized below.

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Staff Report (ID # 4633) Meeting of June 14, 2022
Updated: 6/9/2022 3:41 PM by Alberto Quintanilla Page 3 Introductory Section

The Introductory Section includes the Letter of Transmittal, which is designed to complement the Management’s Discussion and Analysis (the “MD&A”) section, and should be read together to better understand the City’s financial position.

Financial Section

The Financial Section begins with the Independent Auditor’s Report, followed by the MD&A, which serves as an executive summary of the financial statements. Following the MD&A are the Government-Wide Financial Statements, which are designed to provide a broad overview of the City’s finances similar to a private sector business. These statements show the June 30, 2021 fiscal year balances and overall results of operations for all City funds.

The Statement of Activities identifies functions of the City that are principally supported by taxes and those that receive program revenues. All of the City’s activities are considered to be governmental in nature, and, as a result, no business-type activities are reported in these statements. Governmental activities are those that are principally supported by taxes and program revenues. The governmental activities of the City include general government operations, police services, fire services, human services, capital assets maintenance and operations, recreation and leisure services, community development and environmental services, and interest on long-term debt.

Following the Government-Wide Financial Statements are Fund Financial Statements for all major and non-major funds of the City. A major fund is one of material significance and is determined through prescribed calculations. The General Fund is always considered a major fund by definition. Non-major funds are combined in the Fund Financial Statements for presentation purposes.

The fund-level statements are followed by the Notes to the Basic Financial Statements, which contain information on such topics as: Significant Accounting Policies, Cash and Investments, Capital Assets, Long-Term Obligations, Retirement Benefits, and Other Post- Employment Benefits (OPEB).

The Required Supplementary Information provides budgetary comparison schedules for the General Fund and the major special revenue funds, a discussion of the City’s approach to accounting for its street network infrastructure, schedules reporting changes in the net pension liability and pension contributions, and similar schedules for the net OPEB liability and OPEB contributions.

The Supplementary Section presents fund financial statements for the non-major governmental funds, the internal service funds, and the agency funds. It also includes financial statements for each of the programs constituting the Human Services Fund.

Statistical Section

The last section of the ACFR, which is unaudited, contains schedules of statistical data about the City of Fremont in five major categories: Financial Trends, Revenue Capacity, Debt Capacity, Demographic and Economic Information, and Operating Information. These schedules, generally covering a ten-year period, provide operating context for the financial data presented in the financial section of the ACFR.

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Staff Report (ID # 4633) Meeting of June 14, 2022
Updated: 6/9/2022 3:41 PM by Alberto Quintanilla Page 4

The Annual Comprehensive Financial Report is available on the City’s Financial Information web page, and the ACFR opinion letter, the Report to the City Council, and the Single Audit Report are attached to this staff report. Copies are also available for review in the City Clerk’s Office and in the Finance Department.

FISCAL IMPACT: Unmodified audit reports and no material internal control weaknesses are an indication that City funds are being spent appropriately, as intended by the City Council and grantor agencies, and in compliance with federal and state laws. They also help maintain the City’s favorable bond ratings.

ENVIRONMENTAL REVIEW: None required.

LINK to Attachment:

• Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2021

ATTACHMENTS:
• 2021 ACFR Opinion Letter
• 2021 Report to the City Council
• 2021 Single Audit Report

RECOMMENDATION: Receive financial audit reports for Fiscal Year 2020/21 and file.

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ACFR for the Fiscal Year Ended June 30, 2021 | 13
Financial Section

Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of Fremont, California

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Fremon t, California (City), as of and for the fiscal year ended June 30, 20 21, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; t his includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to ex press opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditi ng Standards , issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves pe rforming procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements , whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that ar e appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021 , and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America .

Macias Gini & O’Connell LLP
2121 N. California Blvd., Suite 750
Walnut Creek, CA 94596 www.mgocpa.com

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Attachment: 2021 ACFR Opinion Letter (4633 : FY 2020/21 Financial Audit) Independent Auditors’ Report
14 | City of Fremont, California
Other Matters
Prior-Year Comparative Information
We have previously audited the City’s financial statements as of and for the fiscal year ended June 30, 20 20, and we expressed unmodified opinions on the respective financial statements of the governmen tal activities, each major fund, and the aggregate remaining fund information in our report dated December 18 , 2020. In our opinion, the summarized comparative information presented herein as of and for the fiscal year ended June 30, 2020, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, the modified approach for the City’s infrastructure information, the schedules of changes in the net pension liability and r elated ratios, the schedule s of pension plan contributions , the schedule of changes in the net OPEB liability and related ratios, and the schedule of OPEB plan contributions as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is requi red by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in a n appropriate operational, economic, or historical context. We have applied certain limited pr ocedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the informa tion for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance .

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise t he City’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules designated as supplementary infor mation, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility of management and w ere derived from and relate directly to the underlying accounting and other records used to pr epare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of Ame rica. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjec ted to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on t hem.

Other Reporting Required by Government Auditing Standards In accordance with Government A uditing Standards, we have also issued our report dated December 28, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agr eements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That repor t is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
December 28, 2021

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Attachment: 2021 ACFR Opinion Letter (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021

Table of Contents

Page(s)

Transmittal Letter ........................................................................................................................................... i

Required Communications ............................................................................................................................ 1

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596

i
Honorable Mayor and Members of the City Council
City of Fremont, California

We have audited the financial statements of the governmental ac tivities, each major fund, and the aggregate remaining fund information of City of Fremont, Califo rnia (City), as of and for the year ended June 30, 2021, and the related notes to the financial statement s, which collectively comprise the City’s basic financial statements. Professional standards require that we communicate to you the information related to our audit discussed on pages 1 through 5.

In planning and performing our audit of the basic financial sta tements of the City as of and for the year ended June 30, 2021, in accordance with auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States, we cons idered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reas onable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows:

 Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely.
 Probable. The future event or events are likely to occur.

Our consideration of internal control was for the limited purpo se described in the second paragraph and was not designed to identify all deficiencies in internal contr ol that might be material weaknesses. Given these limitations, during our audit we did not identify any def iciencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this communication, which is an integral part of our audit, is to describe, for management and those charged with governance, the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. This report is a matter of public record and this does not limit the distribution of this report.

Walnut Creek, California
December 28, 2021

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021

1 REQUIRED COMMUNICATIONS

We have audited the financial statements of the City as of and for the fiscal year ended June 30, 2021, and have issued our report thereon dated December 28, 2021. Profess ional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated June 7, 2021, ou r responsibility, as described by professional standards, is to form and express opinions about w hether the financial statements that have been prepared by management with your oversight are presented f airly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the f inancial statements are free of material misstatement. An audit of financial statements includes conside ration of internal control over financial reporting as a basis for designing audit procedures that are ap propriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of th e entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters r elated to the audit that are, in our professional judgment, relevant to your responsibilities in ove rseeing the financial reporting process.

However, we are not required to design procedures for the purpo se of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and ti ming we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, our fi rm, and our network firms have complied with all relevant ethical requirements regarding independence.

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021
2 Qualitative Aspects of the City’s Accounting Practices

Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1(H) to the City’s basic financial statements , the City implemented Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities . The City evaluated all funds and activities in accordance with the statement and deter mined that certain City funds previously reported as agency funds should be reclassified in accordance w ith Statement No. 84 as special revenue funds. Those reclassifications are reflected by including those funds in the summarized comparative financial information for fiscal year ended June 30, 2020 in th e government-wide and governmental fund financial statements. The remaining agency funds, which meet th e criteria for fiduciary activities, are presented as custodial funds. The City also implemented GASB S tatement No. 90, Majority Equity Interests, an amendment of GASB Statements No. 14 and No. 61, and Statem ent No. 98, The Annual Comprehensive Financial Report and the implementation of these statements did not have a sign ificant impact on the City’s financial statements for the fiscal year ended June 30, 2021.

No matters have come to our attention that would require us, un der professional standards, to inform you about (1) the methods used to account for significant unusual t ransactions and (2) the effect of significant accounting policies in controversial or emerging areas for whic h there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial stat ements prepared by management and are based on management’s current judgments. Those judgments are no rmally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significa nce to the financial statements and because of the possibility that future events affecting them may differ ma rkedly from management’s current judgments.

The most sensitive estimates affecting the financial statements are:
 Fair value of investments. The City’s investments are generally carried at fair value, whi ch is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurem ent date. All of the City’s investments are measured using level 2 inputs, except for inves tments in U.S. Treasuries which are measured using level 1 inputs, and investments in Californi a Local Agency Investment Fund, California Asset Management Program, and money market mutual fu nds which are not subject to fair value hierarchy disclosures and are measured at net asset value.  Estimated allowance for losses on notes and loans receivable . The allowance for losses on notes and loans receivable was based on management’s estimate regardi ng the likelihood of collectability.
 Useful life estimates for capital assets . The estimated useful lives of capital assets were based on management’s estimate of the economic lives of capital assets.

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021
3  Net pension and Other Post-Employment Benefits (OPEB) liabilities, contributions, expenses, and other related balances. These balances for pension and OPEB are based on actuarial valuations, which incorporate actuarial methods and assumptions adopted by the City, performed by the California Public Employees’ Retirement System’s and the City’s independent actuaries, respectively.
 Claims liabilities. The City is exposed to a variety of risks of loss due to gener al liability, workers’ compensation and other claims, and records an estimate of these losses based on actuarial studies performed by third-party actuaries. These stu dies are prepared based on the City’s prior claims history, which is used as a basis for extra polating losses for known and incurred but not reported claims. Actual loss experience may vary from these estimates.  Pollution remediation obligations. Accrual of pollution remediation obligations is based on analysis performed by the City’s management.

We evaluated the key factors and assumptions used to develop th e accounting estimates described above and determined that it is reasonable in relation to the basic f inancial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant jud gment and are particularly sensitive because of their significance to financial statement users. The most se nsitive disclosures affecting the financial statements were the disclosures of the Retirement Benefits in N ote 9 and the Other Post-Employment Benefits (OPEB) in Note 10.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with mana gement relating to the performance of the audit.

Corrected and Uncorrected Misstatements

For purposes of this communication, professional standards requ ire us to accumulate all known and likely misstatements identified during the audit, other than those tha t we believe are trivial, and communicate them to the appropriate level of management. Further, professio nal standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financia l statements as a whole and each applicable opinion unit. Management has corrected all identified misstatements.

In addition, professional standards require us to communicate t o you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedu res and corrected by management were material, either individually or in the aggregate, to the finan cial statements taken as a whole or applicable opinion units.

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021
4 Disagreements with Management

For purposes of this letter, professional standards define a di sagreement with management as a matter, whether or not resolved to our satisfaction, concerning a finan cial accounting, reporting, or auditing matter, which could be significant to the City’s financial stat ements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from manageme nt, which are included in the letter dated December 28, 2021.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other acco untants about auditing and accounting matters. Management informed us that, and to our knowledge, the re were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the C ity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational pla ns and strategies that may affect the risks of material misstatement. None of the matters discussed resulted i n a condition to our retention as the City’s auditors.

Other Information in Documents Containing Audited Financial Statements

Pursuant to professional standards, our responsibility as audit ors for other information in documents containing the City’s audited financial statements does not ext end beyond the financial information identified in the audit report, and we are not required to perf orm any procedures to corroborate such other information. However, in accordance with such standards:

Required Supplementary Information

We applied certain limited procedures to the management’s discu ssion and analysis, the budgetary comparison schedules, the modified approach for the City’s infr astructure information, and the schedules related to the pension and other postemployment benefits plans which are required supplementary information (RSI) that supplements the basic financial statemen ts. Our procedures consisted of inquiries of management regarding the methods of preparing the informatio n and comparing the information for consistency with management’s responses to our inquiries, the b asic financial statements, and other knowledge we obtained during our audit of the basic financial s tatements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT, CALIFORNIA
Report to the City Council
For the Fiscal Year Ended June 30, 2021
5 Supplementary Information and Other Sections

We were engaged to report on th e combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evalua ted the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of prepari ng it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements.

We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subje cted to the auditing procedures applied in the audit of the basic financial statements, and accordingly, w e do not express an opinion or provide any assurance on it.

Our responsibility also includes communicating to you any infor mation which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the inf ormation, or manner of its presentation, appearing in the financial statements.

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Attachment: 2021 Report to the City Council (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2021

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Single Audit Reports
For the Year Ended June 30, 2021

Table of Contents

Page

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ............................................................. 1

Independent Auditor’s Report on Compliance For Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance .................................. 3

Schedule of Expenditures of Federal Awards ............................................................................................... 5

Notes to the Schedule of Expenditures of Federal Awards ........................................................................... 6

Schedule of Findings and Questioned Costs ................................................................................................. 7

Summary Schedule of Prior Audit Findings and Corrective Action Plan .................................................... 8

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596

1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards

Honorable Mayor and Members
of the City Council
City of Fremont, California

We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards , issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund i nformation of the City of Fremont, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial
statements, which collectively comprise the City’s basic financ ial statements, and have issued our report thereon dated December 28, 2021.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpo se described in the first paragraph of this section and was not designed to identify all deficiencies in in ternal control that might be material weaknesses or significant deficiencies. Given these limitations , during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance wit h certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that a re required to be reported under Government Auditing Standards.

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

2 Purpose of this Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. A ccordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
December 28, 2021

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596

3 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

Honorable Mayor and Members
of the City Council
City of Fremont, California

Report on Compliance for Each Major Federal Program
We have audited the City of Fremont, California’s (City) compli ance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results sec tion of the accompanying schedule of findings and questioned costs.

Management’s Responsibility
Management is responsible for compliance with the federal statu tes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements refe rred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to fina ncial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance re quire that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a dir ect and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our o pinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

Report on Internal Control Over Compliance
Management of the City is responsible for establishing and main taining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on ea ch major federal program to determine the auditing procedures that are appropriate in the circumstances f or the purpose of expressing an opinion on

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4 compliance for each major federal program and to test and repor t on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose o f expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal p rogram that is less severe than a material weakness in internal control over compliance, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal control over compliance was for t he limited purpose described in the first paragraph of this section and w as not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant def iciencies. We did not identify any deficiencies in internal control over compliance that we consid er to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental ac tivities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements.

We issued our report thereon dated December 28, 2021, which con tained unmodified opinions on those financial statements. Our audit was conducted for the purpose o f forming opinions on the financial statements that collectively comp rise the basic financial state ments. The accompanying schedule of expenditures of federal awards is presented for purposes of add itional analysis as required by the Uniform Guidance and is not a required part of the basic financial stat ements. Such information is the responsibility of management and w as derived from and relates d irectly to the underlying accounting and other records used to prepare th e basic financial statements. T he information has been subjected to the auditing procedures applied in the audit of the financial state ments and certain additional procedures, including comparing and reconciling such information directly t o the underlying accounting and other records used to prepare the basi c financial statements or to th e basic financial statements themselves, and other additional procedures in accordance with auditing standar ds generally accepted in the United States of America. In our opinion, the schedule of expenditures of fed eral awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Walnut Creek, California
May 20, 2022

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2021
Assistance Grant Identifying Number or Federal Amount Passed to Federal Grantor/Pass-Through Grantor/Federal Program Title Listi ng Number Pass-Through Entity Number Expenditures Subrecipients U.S. Department of Agriculture
Direct Program:

SNAP Cluster:

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 18-7013 21,966 $ - $ Total U.S. Department of Agriculture 21,966 - U.S. Department of Housing and Urban Development
Direct Programs:

CDBG - Entitlement Grants Cluster:

Community Development Block Grants/Entitlement Grants 14.218 B-17 -MC-06-0011 74,158 21,961 Community Development Block Grants/Entitlement Grants 14.218 B-18 -MC-06-0011 116,485 116,485 Community Development Block Grants/Entitlement Grants 14.218 B-19 -MC-06-0011 479,202 479,202 Community Development Block Grants/Entitlement Grants 14.218 B-20 -MC-06-0011 1,550,567 1,248,627 COVID-19 - Community Development Block Grants/Entitlement Grants 14.218 B-20-MW-06-0011 1,255,363 - Subtotal CDBG - Entitlement Grants Cluster 3,475,775 1,866,275 Home Investment Partnerships Program 14.239 M-19-DC-06-0001 300,22 1 105,938 Total U.S. Department of Housing and Urban Development 3,775,996 1,972,213 U.S. Department of Justice
Direct Program
COVID-19 - Coronavirus Emergency Supplemental Funding Program 16 .034 2020-VD-BX-1046 89,657 - Total U.S. Department of Justice 89,657 -
U.S. Department of Transportation
Pass-Through State of California Department of Transportation:

Highway Planning and Construction Cluster:

Highway Planning and Construction 20.205 04-5322 1,115,275 - Pass-Through Metropolitan Transportation Commission:

Pass-Through California Office of Traffic Safety
Highway Safety Cluster:

National Priority Safety Programs 20.616 PT20048 29,233 - National Priority Safety Programs 20.616 PT21125 68,663 - Subtotal Highway Safety Cluster 97,896 -
Total U.S. Department of Transportation 1,213,171 - U.S. Department of Treasury
Direct Programs:

Volunteer Income Tax Assistance (VITA) Matching Grant Program 21 .009 V13076 28,000 - COVID-19 - Coronavirus Relief Fund 21.019 n/a 2,891,945 - COVID-19 - Emergency Rental Assistance Program 21.023 n/a 3,425,227 - Total U.S. Department of Treasury 6,345,172 -
U.S. Department of Health and Human Services
Pass-Through Alameda County Area Agency on Aging:

Special Programs for the Aging, Title III, Part D, Disease Prevention and Health Promotion Services 93.043 900111 19,800 - National Family Caregiver Support, Title III, Part E 93.052 90011 1 86,381 - Aging Cluster:

Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 900111 68,223 - Pass-Through Alameda County - Oakland Community Action Partnership:
477 Cluster:

Community Services Block Grant 93.569 21F-4002 44,464 - Pass-Through Alameda County Behavioral Health Care Services:

Block Grants for Prevention and Treatment of Substance Abuse 93. 959 900111 207,854 - Medicaid Cluster:

Medical Assistance Program:

Pass-Through State of California Department of Health and Human Services:

Targeted Case Management - Linkages 93.778 01-19EVRGRN 155,841 - Targeted Case Management - Community 93.778 01-19EVRGRN 153,303 - Alameda County Health Care Services - Medi-Cal Administrative Activities 93.778 19-96008 576,585 - Pass-Through State of California Department of Aging:

Multipurpose Senior Services Program 93.778 MS-2021-37 262,454 - Subtotal Medicaid Cluster 1,148,183 -
Total U.S. Department of Health and Human Services 1,574,905 - U.S. Department of Homeland Security
Direct Program:

Homeland Security Grant Program 97.067 2018-0102 228,584 - Pass-Through County of Alameda:

Homeland Security Grant Program:

FEMA- CERT 97.067 2018-0054 2,712 -
Subtotal Homeland Security Grant Program 231,296 - Total U.S. Department of Homeland Security 231,296 - Total Expenditures of Federal Awards 13,252,163$ 1,972,213 $ See accompanying notes to the schedule of expenditures of federal awards. 5 2.I.c
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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2021

6 (1) GENERAL

The accompanying Schedule of Expenditures of Federal Awards (SE FA) presents the activity of the federal award programs of the City of Fremont, California (City ). The City’s reporting entity is defined in Note 1 to its basic financial statements. The information i n the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The SEFA includes all federal awards received directly from federal agencies and federal awards passed- through other governmental agencies.

(2) BASIS OF ACCOUNTING

The accompanying SEFA is presented using the modified accrual b asis of accounting for grants as described in Note 1 to the City’s basic financial statements. T he City did not elect to use the 10% de minimis cost rate as covered in 2 CFR section 200.414 Indirect (F&A) costs.

As a result of the COVID-19 pandemic, many new federal programs have been established and funding has been added to existing federal programs. Expenditures fund ed from the following acts are denoted by the prefix COVID-19 in the federal program title in the SEFA (as applicable):

 Coronavirus Preparedness and Response Supplemental Appropriations Act  Families First Coronavirus Response Act
 Coronavirus Aid, Relief, and Economic Security Act (CARES Act)  Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA)  American Rescue Plan Act (ARP)

(3) RELATIONSHIP TO THE BASIC FINANCIAL STATEMENTS

Expenditures of federal awards are reported in the City’s basi c financial statements as expenditures in the governmental funds. Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.

(4) RELATIONSHIP TO FEDERAL FINANCIAL REPORTS

Amounts reported in the SEFA agree to or can be reconciled wit h the amounts reported in the related federal financial reports.

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2021

7 Section I Summary of Auditor’s Results

Financial Statements
Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with U.S.

GAAP:

Unmodified

Internal control over financial reporting:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None reported Noncompliance material to the financial statements noted? No

Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None reported Type of auditor’s report issued on compliance for the major federal programs:

Unmodified

Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance?
No

Identification of major federal programs:

Assistance
Listing Numbers

Name of Federal Program or Cluster

21.019

21.023
Coronavirus Relief Fund
Emergency Rental Assistance Program

Dollar threshold used to distinguish between type A
and type B programs:
$750,000

Auditee qualified as a low-risk auditee? Yes

Section II Financial Statements Findings
None reported.

Section III Federal Awards Fi ndings and Questioned Costs None reported.

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit)

CITY OF FREMONT
Summary Schedule of Prior Audit Findings and Corrective Action Plan For the Year Ended June 30, 2021

8 Financial Statements and Federal Awards Findings

There were no financial statements nor federal awards findings for the year ended June 30, 2020.

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Attachment: 2021 Single Audit Report (4633 : FY 2020/21 Financial Audit) Fremont City Council Meeting: 06/14/22 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Budget

SCHEDULED
Sponsors:

STAFF REPORT (ID # 4626) DOC ID: 4626
Updated: 6/15/2022 10:59 AM by Alberto Quintanilla Page 1 SECOND PUBLIC HEARING AND ADOPTION OF FY 2022/23 OPERATING BUDGET AND APPROPRIATIONS LIMIT - Second Public Hearing (Published Notice) and Adoption of the FY 2022/23 Operating Budget and Appropriations Limit
Contact Persons:

Name: David Persselin
Title: Finance Director
Div/Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]

Executive Summary: Staff recommends that the City Council hold the second public hearing on the FY 2022/23 Proposed Operating Budget, and adopt resolutions approving the budget and the constitutional appropriations limit.

BACKGROUND: Staff presented the FY 2022/23 Proposed Operating Budget to the City Council during a televised City Council meeting on May 17, 2022 and the City Council held the first public hearing on the proposed budget on June 7, 2022. The budget identifies total appropriations, including all funds, for FY 2022/23 in the amount of $400.3 million. The General Fund portion of the total is $249.3 million. Following tonight’s second public hearing, the Council may adopt the budget.

Article XIIIB of the California State Constitution imposes a limit on annual appropriations funded from taxes and certain regulatory fees, user fees, and investment earnings. The appropriations limit is often referred to as the “Gann limit.” The appropriations limit is adjusted from year to year using adjustment factors that must be adopted annually by the City Council.

DISCUSSION/ANALYSIS: Staff has calculated the FY 2022/23 appropriations limit in accordance with Article XIIIB of the California State Constitution. The appropriations limit is adjusted annually to reflect both the percentage change in population and the percentage change in cost of living.

The percentage change in population for each city is provided by the State Department of Finance, which also provides the percentage change in California per capita personal income. As an alternative to the percentage change in personal income as a cost of living factor, local agencies may choose to use the percentage change in the local assessment roll from the preceding year due to the addition of local nonresidential new construction. The Alameda County Assessor’s Office annually provides information on the value of nonresidential new construction by city.

As the California per capita change in personal income is 7.55%, while the percentage change in the City’s assessment roll due to the value of nonresidential new construction is

0.18%, staff recommends that the City Council adopt the percentage change in per capita

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Staff Report (ID # 4626) Meeting of June 14, 2022
Updated: 6/15/2022 10:59 AM by Alberto Quintanilla Page 2 personal income as the cost of living factor to be used in calculating the FY 2022/23 appropriations limit.

Using the percentage change in City population of 0.26% and the percentage change in California per capital personal income of 7.55%, the appropriations limit for FY 2022/23 is calculated to be $877.5 million. Based on the proposed General Fund operating budget of $249.3 million, the City is not at risk of exceeding the appropriations limit. The Appropriations Limit Resolution attachment describes in more detail the methodology for calculating the appropriations limit.

FISCAL IMPACT: Total General Fund budgeted resources in the coming fiscal year of $244.6 million and unreserved fund balance (fiscal recovery funds) will be adequate to support total budgeted expenditures of $249.3 million, and the $877.5 million appropriations limit far exceeds the proposed appropriations.

ENVIRONMENTAL REVIEW: None required.

LINK: The FY 2022/23 Proposed Operating Budget is posted on the City’s website at:
https://www.fremont.gov/home/showdocument?id=9158&t=637886311344670000

ATTACHMENTS:
• Draft Resolution Approving and Adopting City's Operating Budget FY 22-23 • Draft Resolution Appropriations Limit

RECOMMENDATIONS:

1. Hold a public hearing on the proposed operating budget for FY 2022/23.

2. Adopt a resolution approving the City of Fremont FY 2022/23 Operating Budget.

3. Adopt a resolution creating an appropriations limit of $877,488,604 for FY 2022/23.

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Resolution 2022-XX Page 1 of 3
RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT

APPROVING AND ADOPTING THE CITY'S OPERATING BUDGET
FOR THE FISCAL YEAR JULY 1, 2022 THROUGH JUNE 30, 2023

WHEREAS, the City Manager has prepared a proposed operating budget for the fiscal year ending June 30, 2023 (the “Proposed Budget”), a copy of which is on file in the office of the City Clerk; and
WHEREAS, the City Council has examined the Proposed Budget, has conferred with the City Manager and appropriate staff in public sessions, and has deliberated and considered the Proposed Budget during public hearings.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY RESOLVES AS FOLLOWS:

SECTION 1. The City Council hereby approves and adopts the City of Fremont, Fiscal Year 2022/23 Adopted Operating Budget, in substantial conformance with the Proposed Budget and as modified and directed by the City Council. The City Manager is directed to prepare the final budget document, as amended and adjusted by the City Council, which shall be formally known as the “City of Fremont, Fiscal Year 2022/23 Adopted Operating Budget” and may be referred to as “the Operating Budget,” and a copy of the Operating Budget shall be filed in the office of the City Clerk.

SECTION 2. The City Manager is hereby authorized to implement the Operating Budget as set forth in this resolution and provided in the Budget documents approved by the Council. The City Manager may delegate this authority to the Finance Director, or other designated City employees, as appropriate.

SECTION 3. The City Manager is authorized to transfer appropriations as needed from savings available in any account in the Operating Budget to any other accounts within the same fund to meet overall Operating Budget requirements.

SECTION 4. The City Manager is authorized to transfer among various funds, amounts designated as “Transfers” in the Operating Budget, in increments and at intervals determined by the City Manager.

SECTION 5. The City Manager is authorized to increase appropriations for Fiscal Year 2022/23 expenditures in an amount not to exceed the amount of funds encumbered, but not yet expended, from Fiscal Year 2021/22. The actual amount of the increased appropriations due to encumbrances will be reported to the City Council as part of the Fiscal Year 2021/22 year- end financial report.

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Attachment: Draft Resolution Approving and Adopting City's Operating Budget FY 22-23 (4626 : SECOND PUBLIC HEARING - FY 2022/23 Resolution 2022-XX Page 2 of 3
SECTION 6. When revenue estimates for the Development Services Cost Center exceed the amount identified in the Budget due to increases in development and fee activity as verified by the Finance Director, the City Manager is authorized to increase appropriations for Fiscal Year 2022/23 expenditures, in an amount not to exceed the amount of the increased revenue.

Any increased appropriation shall be documented in writing by the City Manager, filed with the Finance Director, and reported to the City Council as part of the Fiscal Year 2022/23 year-end financial report. The multiplier used to calculate billing rates for planning services and engineering services provided by the Development Services Cost Center will be 3.25.

SECTION 7. When revenue estimates for the Recreation Cost Center exceed the amount identified in the Budget due to increases in recreation fee activity as verified by the Finance Director, the City Manager is authorized to increase appropriations for fiscal year 2022/23 expenditures in an amount not to exceed the amount of increased revenue. Any increased appropriation shall be documented in writing by the City Manager, filed with the Finance Director, and reported to the City Council as part of the fiscal year 2022/23 year-end financial report.

SECTION 8. When revenue estimates exceed the amount identified in the Budget due to increases in grant or fee revenues as verified by the Finance Director, the City Manager is authorized to increase appropriations for fiscal year 2022/23 expenditures in an amount not to exceed the amount of increased revenue. Any increased appropriation shall be documented in writing by the City Manager, filed with the Finance Director, and reported to the City Council as part of the fiscal year 2022/23 year-end financial report.

SECTION 9. When higher than anticipated revenue activity in the General Fund results in increased costs to directly support that activity (e.g., automated traffic enforcement), the City Manager is authorized to increase appropriations for fiscal year 2022/23 expenditures in an amount not to exceed the amount of increased revenue. Any increased appropriation shall be documented in writing by the City Manager, filed with the Finance Director, and reported to the City Council as part of the fiscal year 2022/23 year-end financial report.

SECTION 10. The City Manager is authorized to appropriate and transfer funds from the General Fund, or other funds from which personnel costs are budgeted, to the Risk Management Fund in the amounts necessary to maintain adequate funding of the workers’ compensation and general liability reserves, based on the actuarial valuation reports for these programs as of June 30, 2022, to the extent that the necessary amounts are available as unencumbered ending fund balance.

SECTION 11. The City Manager is instructed to use restricted funding sources in accordance with the requirements of the funding sources prior to using funds with unrestricted resources in order to allow the City the greatest flexibility in meeting its financial obligations.

SECTION 12. As part of the City’s Operating Budget, each Councilmember is authorized $6,500, and the Mayor is authorized $20,000, for Council travel and expense reimbursement, to be utilized in accordance with the Council Travel Budget and Expense Reimbursement Policy.

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Attachment: Draft Resolution Approving and Adopting City's Operating Budget FY 22-23 (4626 : SECOND PUBLIC HEARING - FY 2022/23 Resolution 2022-XX Page 3 of 3
SECTION 13. The City Manager is instructed to implement all policies contained in the “Policies” section of the Budget.

SECTION 14. This resolution shall take effect immediately upon its adoption.

ADOPTED _______, 2022, by the City Council of the City of Fremont, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor

ATTEST: APPROVED AS TO FORM:

City Clerk City Attorney

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Attachment: Draft Resolution Approving and Adopting City's Operating Budget FY 22-23 (4626 : SECOND PUBLIC HEARING - FY 2022/23 Resolution 2022-XX Page 1 of 3

RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT

ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR
2022/23 FOR THE CITY OF FREMONT

WHEREAS, Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979; with modifications under Proposition 111, passed by the voters of California in June 1990; and implemented by California Government Code Sections 7900, and following), speci fies that appropriations of governmental entities may increase by an amount not to exceed the change in population and the change in either the California per capita income or the change in non -residential assessed valuation due to new construction within the City; and
WHEREAS, documentation used in the determination of the fiscal year 2022/23 appropriations limit has been available to the public prior to City Council’s determination in this matter, as required by Government Code Section 7910.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY RESOLVES AS FOLLOWS:

SECTION 1 . Pursuant to the appropriations limit formula set forth by Government Code Sections 7900-7913, the City Council does hereby establish the appropriations limit for fiscal year 2022/23 for the City of Fremont a t $877,488,604 , as documented in Exhibit A, attached hereto and incorporated herein by reference.

SECTION 2. The City Council of the City of Fremont adopts the following adjustment factors for use in determining the fiscal year 2022/23 appropriations limit:

Population Factor: The percentage change in the City’s population from January 1 of the preceding calendar year to January 1 of the current calendar year , as provided in the State of California Department of Finance “Price and Population Information ” publication, dated May 2022.

Per Capita Personal Income : The percentage change in California per capital personal income from the preceding year as provided i n the State of California Department of Finance “Price and Population Information” publication , dated May 202 2. ///
///
///

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Attachment: Draft Resolution Appropriations Limit (4626 : SECOND PUBLIC HEARING - FY 2022/23 OPERATING BUDGET) Resolution 2022-XX Page 2 of 3

SECTION 3. This resolution shall take effect immediately upon its adoption.

ADOPTED June 14, 2022, by the City Council of the City of Fremont, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor

ATTEST: APPROVED AS TO FORM:

City Clerk City Attorney

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Attachment: Draft Resolution Appropriations Limit (4626 : SECOND PUBLIC HEARING - FY 2022/23 OPERATING BUDGET) Resolution 2022-XX Page 3 of 3 Exhibit A to Resolution No. 2022-XX
Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979, with modifications under Proposition 111 passed in June 1990, and implemented by California Government Code sections 7900, and following) provides the basis for the appropriations limitation. In brief, the City’s appropriations growth rate is limited to changes in population and either the change in California per capita income or the change in the local assessment roll due to new, non-residential construction. The formula to be used in calculating the growth rate is:
% change in population + 100
100
multiplied by either
% change in per capita income + 100
100
or
% change in assessment roll due to non-residential construction + 100 100
The resultant factor times the previous appropriations limit equals the new appropriations limit.

Both the California per capita personal income price factor and the population percentage change factor are provided by the State Department of Finance to local jurisdictions each year. The population percentage change factor estimates the change in the City’s population between January of the previous fiscal year and January of the current fiscal year. Reports that present changes in new non-residential assessed value are provided by the County of Alameda. These numbers provide the basis for the factor to be used in the City’s calculation of the appropriations limit. Of the two methods above, the City is using the “per capita personal income” factor because it results in the higher appropriations limit.

On May 2, 2022, the State Department of Finance notified each city of the population change factor and the per capita personal income factor to be used in determining the appropriations limit. The percentage change in per capita income is 7.55%. The calculation as applied to the City of Fremont for FY 2022/23 is as follows:

The population change on January 1 of the previous year (228,872) compared to the population on January 1, 2022 (229,476) is 604, or a 0.26% increase.

The change in per capita personal income is 7.55%.

The factor for determining the year-to-year increase is computed as:

0.26 + 100 X 7.55 + 100 = 1.0783
100 100
Applying this year’s factor of 1.0783 to last year’s limit of $813,770,383 yields the Appropriations Limit for FY 2022/23 of $877,488,604.

Based on an operating budget of $249,295,000 Fremont is not at risk of exceeding the appropriations limit. The Appropriations limit is adopted by the City Council concurrently with the adoption of the FY 2022/23 operating budget.

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Attachment: Draft Resolution Appropriations Limit (4626 : SECOND PUBLIC HEARING - FY 2022/23 OPERATING BUDGET)

Fremont City CouncilJune 14, 2022

Fremont City Council
June 14, 2022